Another organization wants to be allowed to weigh in on the case between PHH and the CFPB – but this time, it’s on the lender’s side
More organizations are pushing to be allowed to weigh in on the case between PHH and the Consumer Financial Protection Bureau – but this time, it’s on the mortgage lender’s side.
In a decision last year, a three-judge panel in the case ruled that the CFPB’s structure was unconstitutional. At issue was the fact that the agency’s director could only be removed for cause – a move meant to shield the director from a politically motivated firing. However, the panel found that the agency’s structure meant it didn’t have enough accountability.
However, the CFPB appealed that ruling, asking for the case to be heard by the full court. That request was eventually granted – but in the meantime, Democratic lawmakers and 17 state attorneys general moved to intervene in the case, arguing for the CFPB.
Now, however, other organizations are pushing to intervene on the side of PHH, according to a HousingWire report.
State National Bank, of Big Spring, Texas, has moved to intervene in the case. The bank filed its own suit against the CFPB in 2012, claiming that the agency’s “unprecedented, unchecked power” violated the Constitution’s separation of powers. That suit was tossed by a federal judge the following year, but reinstated on appeal, HousingWire reported.
The Competitive Enterprise Institute and the 60 Plus Association, an advocacy group for seniors, are part of State National Bank’s suit. CEI General Counsel Sam Kazman said that the organizations are “cautiously optimistic” that their motion to intervene will be approved, HousingWire reported.
Related stories:
Democratic lawmakers join battle between CFPB and PHH
State AGs join fight to protect CFPB
