Removing Barriers Blog

PHH Declines to Appeal Decision in PHH v. CFPB
Posted May 03, 2018 by Chandler Schuette

Earlier this year, the Bureau of Consumer Financial Protection’s (BCFP) single director structure was upheld by the U.S. Court of Appeals in Washington, DC in the en banc review of the PHH Corporation v. CFPB (now known as BCFP).

PHH Corporation has decided against appealing the U.S. Court of Appeals decision.  The deadline to file the petition for cert was May 1st.

PHH, a mortgage service provider that the Bureau targeted for an enforcement action in 2015, challenged the single-director leadership structure in court and initially won a ruling in its favor, but that ruling was overturned in January.

In its ruling, the court held that the scope of the Bureau’s authority is not overbroad, because the Bureau’s powers are simply a conglomeration of powers previously housed in several other agencies, and because the Bureau’s authority is more cabined than many other independent agencies. Furthermore, the court concluded that the single-director structure is not historically novel. This reversed the previous decision that the Bureau’s Director should be able to be removed “at will” rather than the current standard. 

CUNA participated as an Amici in the en banc review, with a brief focused not on the constitutional issues.