PHH Corp. et. al. vs CFPB

PHH Corp. et. al. vs CFPB

My recent presentation for Lambda Alpha.

We discussed the PHH Corp. et. al. vs CFPB  case which was decided Oct. 11,
2016 by the US court of Appeals for the DC Circuit.  PHH argued that the authorizing legislation for the CFPB creates an unconstitutional independent agency officer  not subject to review by any branch of government.

The reason: The CFPB is run by a single director rather than a multi-member commission.  The director is appointed for a term of years and can only be removed for cause.  Since funding comes from the Federal Reserve, Congress does not have budgetary power.  PHH also raised the issue of statutory interpretation as there is no statutory definition of the anti-kickback provisions of RESPA.

Also, the Dodd-Frank provisions on unfair and deceptive practices are not adequately defined.  The CFPB has appealed this case.  We also had a discussion about the Dodd-Frank provisions that are applicable to commercial real estate loan and pools.

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