Appeals Court Upholds CFPB Constitutionality

Jan 31, 2018

The U.S. Court of Appeals for the District of Columbia Circuit has ruled in an 8-3 judgment that the single director leadership structure of the Consumer Financial Protection Bureau (CFPB) does not violate the Constitution, overturning an earlier court ruling that stated the opposite. The court also ruled ruled that a president can only remove the CFPB Director from office for cause and not at will.

“Applying binding Supreme Court precedent, we see no constitutional defect in the statute preventing the president from firing the CFPB director without cause,” Judge Nina Pillard wrote for the court. “We thus uphold Congress’s choice. Congress’s decision to provide the CFPB Director a degree of insulation reflects its permissible judgment that civil regulation of consumer financial protection should be kept one step removed from political winds and presidential will. We have no warrant here to invalidate such a time-tested course.”

The court’s ruling, in the case PHH Corp. v. Consumer Financial Protection Bureau, noted that the CFPB director can only be fired for “inefficiency, neglect of duty, or malfeasance in office.”

The case will likely be appealed to the U.S. Supreme Court by the Trump Administration, which has cited the CFPB’s unaccountability to the executive and legislative branches of government.

About the author

Phil Hall

Link copied

Published

Jan 31, 2018

Wholesale

eLEND Lowers Credit Score Floors To 500 On FHA Cash-Out Loans

eLEND expands eligibility for lower-score borrowers on select FHA and conventional loans through Dec. 31

eLEND is lowering minimum credit score requirements on select FHA cash-out refinances and conventional loans through the end of the year, joining a growing number of lenders easing restrictions to reach borrowers who previously fell outside their lending guidelines.The Parsi...

Regulation and Compliance

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

Housing affordability has become a major issue heading into Tuesday's midterm elections. But for mortgage lenders and originators, some of the decisions that could matter most in 2027 are already underway, regardless of which party controls Congress.The Trump administration ...

Feb

Palm Springs, CA

More from

Regulation and Compliance

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

Regulation and Compliance

Nov 02, 2026

UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Regulation and Compliance

Oct 27, 2026

Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Tech

Oct 27, 2026

The Hidden Cost Of Appraisal Uncertainty

As home equity lending grows, lenders need a better way to resolve conflicting property evidence before it creates costly setbacks

Regulation and Compliance

Oct 25, 2026

Trump Targets Mortgage Insurance, Refi Costs In Sweeping Housing Order

The executive order calls for automatic mortgage insurance cancellation, expanded title insurance alternatives, and cheaper refinances, potentially changing how lenders and servicers handle borrower costs

Regulation and Compliance

Oct 23, 2026