This past Tuesday, some industry eyebrows raised when the federal appeals court hearing the case told the CFPB to be ready to answer questions about their single-director governance structure which PHH claims is unconstitutional.
The case clearly has massive industry implications, especially with a Presidential election looming. Ted Cruz has previously introduced legislation to abolish the CFPB and Donald Trump and John Kasich are both on record saying over the top regulation is killing businesses. Both Hillary Clinton and Bernie Sanders have praised the CFPB and have commented on supporting even broader jurisdiction for the agency.
We’ll be keeping a close eye on this case, and the potential implications it could have for our lender members.