February 16, 2017
Today, the U.S. Court of Appeals for the District of Columbia Circuit granted the Consumer Financial Protection Bureau's petition for rehearing en banc of the court's decision in PHH Corporation v. Consumer Financial Protection Bureau, and vacated its October 11, 2016 judgment holding that the CFPB's structure is unconstitutional. Oral argument before the en banc court will be heard on May 24, 2017.
In its October 2016 decision, the appellate court found that the Director of the CFPB "enjoys more unilateral authority than any other officer in any of the three branches of the U.S. Government, other than the President." The appellate court ruled that the CFPB can continue to operate, but "will do so as an executive agency akin to other executive agencies headed by a single person, such as the Department of Justice and the Department of the Treasury" and will be removable by the President.
Prior Alert: CFPB Structure Ruled Unconstitutional