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New year, new team: CFPB kicks off 2017 with leadership changes

Bureau installs five new officers as it continues to battle legal challenges to its single-director structure

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As the Consumer Financial Protection Bureau (CFPB) continues to battle legal challenges to its single-director organizational structure, the bureau recently added five new members to its executive team. The legal challenges The constitutionality of the CFPB’s concentration of power in one leader, current Director Richard Cordray, is the subject of an ongoing lawsuit involving mortgage lender PHH Corp. Accused of using its mortgage reinsurance practices to funnel kickbacks in violation of the Real Estate Settlement Procedures Act (RESPA), PHH has challenged Cordray’s pursuit of a $109 million penalty against the company and its subsidiaries -- and as the first company to take the CFPB to task over an enforcement action, has so far prevailed. In October 2016, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the CFPB’s concentration of executive power in one director -- a setup prescribed by the bureau’s implementing law, the Dodd-Frank Act -- “n...