CBA Statement on Court’s Ruling in PHH V. CFPB

January 31, 2018

“While the Court ruled the CFPB’s governing structure was not unconstitutional, it does not mean the current structure is appropriate for the Bureau’s long-term credibility.  … to uphold the Bureau’s mission of consumer protection”

Washington, D.C. – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), issued the following statement in response to the U.S. Court of Appeal’s decision in PHH Corporation v. CFPB:

“We applaud the Court’s decision to repeal the amplified penalty on PHH, which undermined the longstanding application of RESPA.

“While the Court ruled the CFPB’s governing structure was not unconstitutional, it does not mean the current structure is appropriate for the Bureau’s long-term credibility.

“Congress should create a bipartisan commission at the CFPB, in place of a sole director, to uphold the Bureau’s mission of consumer protection and would establish transparency, diversity of thought, additional industry insight and rule makings beneficial to consumers, the industry and the economy.”

BACKGROUND MATERIALS

Today, the en banc panel of the D.C. Circuit Court issued the long-awaited final decision in the PHH case. The Court held the structure of the CFPB (a sole director that can only be removed for cause) is consistent with the President’s authority and was NOT a constitutional violation. The Court also upheld the original three-judge panel interpretation of RESPA and its application to PHH in this case, stating that it was improperly applied and PHH is entitled to the relief granted. 

CBA Amicus Brief

CBA’s USA Today op-ed on the need for a bipartisan commission

 

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