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Not so fast: 2 groups tell court that CFPB’s Cordray should stay

Groups want federal court to hear their positions in the ongoing PHH-CFPB battle
  • The authors of the legislation that created the CFPB and a group of consumer rights advocates filed two "friends of the court" briefings about the PHH/CFPB court battle.
  • On Oct. 11, a three-judge appeals court panel ruled in the case that the CFPB’s concentration of executive power in director Richard Cordray is unconstitutional.
  • The CFPB has asked all 11 appeals court justices to weigh in on the matter.
  • PHH and the Solicitor General must file responses to this request by Dec. 22.
  • The two "friends of the court" briefings were filed without invitation and support the CFPB's current structure.

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After the controversial decision that declared the Consumer Financial Protection Bureau’s (CFPB) single-director structure “unconstitutional,” the authors of the legislation that created the bureau and a group of consumer rights advocates have something to say about the matter. As we wait to see how mortgage lender PHH Corp. -- and the Solicitor General of the United States -- will respond to a petition for federal appellate court review of the decision, the authors of the sweeping legislation that created the bureau and a group of consumer rights advocates have something to say about the matter. Richard Cordray On Nov. 18, the CFPB asked the U.S. Court of Appeals for the District of Columbia to review what it called “a dramatic and unprecedented ruling” issued by a three-judge panel on Oct. 11, which concluded that the CFPB’s concentration of executive power in director Richard Cordray “not only departs from settled historical practice, but also poses a far ...