CFPB loses landmark case

consumer financial protection bureau
By Sam Kerr, Sasha Padbidri
12 Oct 2016

The Consumer Financial Protection Bureau (CFPB) has been ruled as being unconstitutional by the US District Court of Appeals for the District of Columbia, in a landmark ruling that questioned the legality of its leadership and its use of retroactive enforcement action.

The case centred on an enforcement action brought against PHH Mortgage Corporation for what CFPB described as “kickbacks for mortgage insurance referrals”.

During the case, PHH said it was in full compliance with the Real Estate Settlement Procedures Act (

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