In addition to its implications for CFPB rulemaking, the D.C. Circuit’s decision in PHH Corporation v. CFPB has significant implications for the CFPB’s authority to enforce federal consumer financial protection laws as well as the Consumer Financial Protection Act (CFPA) prohibition of unfair, deceptive, or abusive acts or practices (UDAAP).… Continue Reading
Cordray remarks to MBA signal continued CFPB focus on servicing, likely petition for rehearing in PHH case
By Richard J. Andreano, Jr. on
Posted in Mortgages, Regulatory and Enforcement
In his remarks at the Mortgage Bankers Association’s annual meeting in Boston on October 25, Director Cordray signaled that mortgage servicing will continue to be a focus of CFPB supervisory and enforcement activity, with the CFPB taking a rigorous approach to compliance.
While noting that the CFPB has seen “some progress” in compliance with CFPB mortgage servicing rules,” most notably efforts by certain servicers to adequately staff up effective compliance management programs,” Director Cordray stated that “many troubling issues persist.” … Continue Reading
CFPB Deputy Enforcement Director mum on whether CFPB will seek further review of PHH decision
By Alan S. Kaplinsky on
Posted in CFPB Rulemaking, Regulatory and Enforcement
During the “Developments at the CFPB” panel this morning at the Pennsylvania Bar Institute Consumer Financial Services & Banking Law Update program in Philadelphia, Jeffrey Ehrlich, the CFPB’s Deputy Enforcement Director, would not comment on whether the CFPB will seek further judicial review of the October 11 opinion of a 3-judge panel of the U.S.… Continue Reading
What the D.C. Circuit’s PHH decision means for CFPB rulemaking
By Alan S. Kaplinsky on
Posted in CFPB Rulemaking, Regulatory and Enforcement
In its decision last week in PHH Corporation v. CFPB, the D.C. Circuit ruled that the CFPB’s single-director-removable-only-for-cause structure is unconstitutional. While the D.C. Circuit (in footnote 19) noted that it “need not here consider the legal ramifications of our decision for past CFPB rules or for past agency enforcement actions,” we have determined that one legal ramification of the decision is greater regulatory oversight for CFPB rulemaking.… Continue Reading
Breaking News: In PHH v. CFPB, D.C. Circuit Holds that CFPB Structure is Unconstitutional
The D.C. Circuit issued its long-awaited decision in PHH Corporation v. CFPB. In reversing the decision of Consumer Financial Protection Bureau (CFPB) Director Cordray to impose an enhanced penalty of $109 million on PHH for its use of a captive (wholly-owned) mortgage reinsurer, the court made several landmark rulings.
First, it held that the CFPB’s single-director-removable-only-for-cause structure is unconstitutional.… Continue Reading