Supreme Court to hear CFPB Leadership Case

November 12, 2019
This case questions the legality of rulings that prevent the President from firing the CFPB director.


The Supreme Court announced it will take on the case challenging the constitutionality of the Consumer Financial Protection Bureau’s leadership. Back in 2017, a battle between the CFPB and PHH began, starting with a $103 million increase to a $6 million fine initially levied against PHH for allegedly illegally referring consumers to mortgage insurers in exchange for kickbacks. PHH challenged this ruling in court, and the fight ended, or so it appeared, with the CFPB’s leadership structure being declared unconstitutional by the Court of Appeals for the District of Columbia Circuit in a 2-1 vote. The CFPB fought that ruling, asking the court to rehear the case en banc, meaning that it wanted the entire court to hear the case, rather than the three judges who ruled on the case previously. And now the Supreme Court has agreed to take on the case. As it stands now, the President cannot fire the CFPB director unless it’s for cause. The previous decision made the CFPB director fireable at will, but that’s not the case anymore as the case continues to be challenged in court. The CFPB Director is siding against her own bureau, saying, “The bureau should adopt the Department of Justice’s view that the for-cause removal provision is unconstitutional.” 

Source: HousingWire