The CFPB may have to face a fellow government agency in its battle against the servicer
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It looks like the Consumer Financial Protection Bureau won’t just be fighting Ocwen Financial in an upcoming lawsuit – it may also be fighting a fellow government agency.
After the CFPB caccused Ocwen in April of numerous servicing violations, the servicer hit back by asking a federal judge to declare the agency unconstitutional. Like fellow mortgage company PHH, Ocwen claims the CFPB’s structure is unconstitutional because director Richard Cordray has too much power and too little oversight.
And now the Department of Justice may be siding with the servicer over the CFPB. The DOJ had already elected to join PHH’s case against the CFPB, according to a HousingWire report. Ocwen had petitioned the court in its case to “fully consider the Attorney General’s conclusion that the CFPB is unconstitutionally structured.” The judge in the case ruled in Ocwen’s favor.
Ocwen spokesman John Lovallo said that the servicer “looks forward to the Attorney General’s views on the constitutional issues raised in our motion to dismiss.”
The ruling allows the DOJ to contribute to Ocwen’s case if it so chooses. While Justice has not commented on the case, its previous opinion in the PHH case makes it likely that it will join forces with Ocwen as well, HousingWire reported.
Related stories:
Ocwen challenges CFPB’s constitutionality
Ocwen’s terrible, horrible, no-good, very bad day
After the CFPB caccused Ocwen in April of numerous servicing violations, the servicer hit back by asking a federal judge to declare the agency unconstitutional. Like fellow mortgage company PHH, Ocwen claims the CFPB’s structure is unconstitutional because director Richard Cordray has too much power and too little oversight.
And now the Department of Justice may be siding with the servicer over the CFPB. The DOJ had already elected to join PHH’s case against the CFPB, according to a HousingWire report. Ocwen had petitioned the court in its case to “fully consider the Attorney General’s conclusion that the CFPB is unconstitutionally structured.” The judge in the case ruled in Ocwen’s favor.
Ocwen spokesman John Lovallo said that the servicer “looks forward to the Attorney General’s views on the constitutional issues raised in our motion to dismiss.”
The ruling allows the DOJ to contribute to Ocwen’s case if it so chooses. While Justice has not commented on the case, its previous opinion in the PHH case makes it likely that it will join forces with Ocwen as well, HousingWire reported.
Related stories:
Ocwen challenges CFPB’s constitutionality
Ocwen’s terrible, horrible, no-good, very bad day
