In this analysis, we assess the D.C. Circuit Court of Appeals ruling yesterday. The court ruled that the Consumer Financial Protection Bureau not only misunderstood its authority under Dodd-Frank and misread RESPA and its authority to enforce that law against PHH, but also that the Bureau director’s authority is so broad as to be unconstitutional. Because the CFPB directorship is analogous in some respects to FHFA’s we note how the case could affect the agency. In short, we don’t see any substantive near-term impact. Clients are advised that this conclusion is not a legal opinion and that FedFin does not practice law.
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