Controversial CFPB awaits crucial ruling over enforcement practices

richard cordray
By Sam Kerr, Sasha Padbidri
01 Sep 2016

The Consumer Financial Protection Bureau is awaiting the ruling in the US Court of Appeals for the DC Circuit over whether an enforcement action made against PHH Mortgage was legal and constitutional, in the first such suit against the regulator.

PHH’s case against the CFPB accuses the agency of overreach and unconstitutional behaviour in its issuance of a $109m enforcement penalty against the lender, over what the regulator called “kickbacks for mortgage insurance referrals”.

PHH is the first company to take on the CFPB, an agency which has ...

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