Democratic lawmakers join battle between CFPB and PHH

by Ryan Smith30 Jan 2017
Two Democratic lawmakers are joining the fight between the Consumer Financial Protection Bureau and PHH.

Last year, the CFPB’s leadership structure was deemed unconstitutional by a three-judge panel of the US Circuit Court of Appeals for the District of Columbia. The panel ruled that the CFPB’s structure, under which the director can only be removed for cause, meant Director Richard Cordray lacked necessary accountability. But the CFPB is demanding that the full Court of Appeals hear the case.

Last week, 17 Democratic state attorneys generals filed a motion to intervene in the case on the side of the CFPB. Now Sen. Sherrod Brown (D-Ohio) and Rep. Maxine Waters (D-Calif.) are following suit, according to a HousingWire report.

Brown and Waters are arguing that they can’t rely on the CFPB under the Trump Administration to adequately represent its own interest as an independent agency, according to a report by the CFPB Monitor. 

The lawmakers claim that they have grounds to intervene in the case because they voted for the Dodd-Frank Act, which established the CFPB. According to Brown and Waters, if the CFPB – acting at the Trump administration’s direction – fails to adequately defend its own constitutionality, their “votes to establish the Bureau as an independent agency will be nullified without full judicial review of the constitutional question presented in this case,” according to court documents.

Congressional Democrats have already made it clear that any attempt to replace or weaken the CFPB will result in a fight. Earlier this month, Democrats on the House Financial Services Committee – led by Waters – sent President Trump a letter demanding that he reject any attempt to remove CFPB Director Richard Cordray before the expiration of his term in 2018.



Related stories:
Democrats promise to fight any attempt to oust CFPB director
State AGs join fight to protect CFPB

COMMENTS

  • by Ken A | 1/30/2017 2:45:30 PM

    Wow, these idiots can't read the handwriting on the wall. The CFPB is the closest thing we have to a Nazi oppression. The court didn't rule out the CFPB, just the way it is lead and it needs to be accountable to the people and congress who we send to handle these things. Two simple changes and they can get back to work stopping the bad actors in the financial services industry. We do need the CFPB, just not a dictatorship lead agency.

  • by concerned mort rep | 1/30/2017 4:21:48 PM

    They don't understand that all of the obscene compliance and law suits just drive up the cost for the consumer. They don't get it because they have never run a business. Maybe they think that all of these companies that are being sued to the wall will just agree to make less money. NOT GOING TO HAPPEN! We all pay the price!

  • by gary h | 1/30/2017 6:52:29 PM

    Time to disband the CFPB and the Dodd Frank . This Nazi regime has hurt the small business owner, the consumer and has destroyed real estate values. A home is worth what a buyer in an open market is willing to pay. Not what the bank determines it to be. Also Is't it true that Barney Frank owns an appraisal management company. Isn't that a conflict of interest for a co sponsor of a bill to benefit from the legislation that they introduced?

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