Supreme Court to Consider CFPB Constitutionality

Oct 21, 2019

Photo credit: Getty Images/Phillip Nelson

The U.S. Supreme Court has agreed to hear a case that challenges the constitutionality of the Consumer Financial Protection Bureau (CFPB).

This court challenge follows the efforts by the California debt relief firm Seila Law, which filed a petition asking the Supreme Court to decide whether the CFPB’s structure is constitutional. Seila lost its case before the 9th Circuit, but on Sept. 17 the CFPB and the Department of Justice joined its cause by asking the high court justices to review Seila Law’s argument that the CFPB’s single-Director structure was unconstitutional.

In an order posted Friday, the Supreme Court’s justices asked both sides in this case to address whether the CFPB should remain operational even if its leadership structure is determined to be unconstitutional. A decision in the case could come by the end of June, in the middle of the presidential campaign. Sen. Elizabeth Warren (D-MA), who is widely credited as being the CFPB’s architect, is among the leading candidates for the Democratic Party’s presidential nomination.

Earlier this year, the Supreme Court has refused to hear a case brought by the State National Bank of Big Spring, Texas, the Competitive Enterprise Institute (CEI) and the 60 Plus Association that challenged that challenged the CFPB’s constitutionality. CEI General Counsel Sam Kazman welcomed the news of the Seila case by stating, “As a party in the first major challenge to the constitutionality of this agency, we are glad to see that this issue has now been taken up by the Supreme Court.”

About the author

Phil Hall

Link copied

Published

Oct 21, 2019

Analysis and Data

Mortgage Rates Edge Down To 7.32%, Offering Limited Pipeline Relief

The modest decline trims borrower payments, while year-end forecasts above 7% leave LOs focused on deals already close to working

The first mortgage-rate decline in two months trims about $22 from the monthly payment on a $400,000 loan. For LOs trying to salvage year-end transactions, that creates an opening among borrowers already close to making the numbers work.Freddie Mac reported Thursday that the...

Operations

LO Compensation: What The Split Doesn’t Tell You

NMP’s Ignite summit explored the rules, expenses, and platform differences that shape what originators actually earn

A loan officer willing to earn less to win a borrower can still run into a compensation problem. The sticking point is how that smaller paycheck is determined, who funds it, and whether the arrangement connects compensation to the loan’s terms.That tension drove National Mor...

Nov

Houston, TX

More from

Regulation and Compliance

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

What The 2026 Election Means For Mortgage Professionals

CHLA’s Scott Olson examines how the next Congress could reshape housing tax breaks, lending costs, and access to homeownership — and where bipartisan deals remain possible

Opinion

Oct 22, 2026

Servicer Takes New York Payment-Fee Fight To Federal Court

Onity Group says the state hasn’t clearly defined how fees for optional expedited payments must relate to the cost of providing the service

Regulation and Compliance

Oct 21, 2026

January’s Condo Reserve Increase Puts Project Budgets In Focus

Fannie Mae and Freddie Mac’s higher allocation requirement gives LOs reason to review association finances now, while California’s new funding duties begin in 2032

Regulation and Compliance

Oct 21, 2026

California Probes Lenders Over Delayed Wildfire Insurance Payouts

State regulators are examining access to rebuilding funds, while CalHFA offers financing tools for eligible disaster survivors

Regulation and Compliance

Oct 20, 2026