On March 17, 2017, the Department of Justice (DOJ) filed an amicus brief in PHH Corp. v. CFPB, No. 15-1177 (D.C. Cir.), in which it argued that the Consumer Financial Protection Bureau’s (CFPB) single director structure is unconstitutional and that President Trump should have the power to remove the CFPB’s director without cause. The amicus brief represents a reversal of the DOJ’s previous position in the case, made in a brief filed earlier by the DOJ under the Obama administration.
LenderLaw Watch has reported extensively about the PHH case (posts about the case and its significance are available here, here, and here). Last month, the full D.C. Circuit Court of Appeals agreed to hear the case, vacating an earlier ruling by a three-judge D.C. Circuit panel finding the CFPB’s single director structure unconstitutional and permitting the director’s removal at the president’s discretion. Oral argument in the en banc review of the case is scheduled for May 24, 2017.
**Editor’s Note: A version of this post originally appeared in our March 22, 2017 Financial Services Weekly News Roundup. The opinions and analysis in this post are those of LenderLaw Watch, and do not necessarily reflect the views or opinion of PHH or of other Goodwin clients.