Understanding Today’s Connected Borrower

Sign up for this webinar to learn how to transform the borrower journey from transaction to relationship and gain a significant lift in production in today’s digital lending environment.

The unique challenges facing minority first-time homebuyers

In this episode, we interview Timothy Demry, a real estate agent in San Francisco’s Bay Area, about his experience serving minority first-time homebuyers.

How modernized servicing creates customers for life

Servicers must be powered by nimble technology to be heroes to borrowers, stalwarts to investors, and stewards of consumer protection to regulators.

Savvy lenders are already preparing for the next valley – Here’s how

Despite increased rate of tech adoption, the industry still has room for continued tech development and usage. Read here to learn more about key technologies that lenders need to give more attention to.

Politics & Money

Payday lender challenges CFPB constitutionality in Supreme Court petition

Asks Supreme Court to rule on CFPB structure

A payday lender, All American Check Cashing, is asking the Supreme Court to rule on the constitutionality of the Consumer Financial Protection Bureau.

The lender is alleging that the CFPB’s leadership is unconstitutional and saying the separation-of-powers should be judicially redressed, according to an article by Brittany De Lea for FOXBusiness.

From the article:

All American is arguing that the agency’s structure is unconstitutional, based on how its director can be removed, as well as “other anomalous features of the agency.” All American, of Mississippi, asked the U.S. Supreme Court to take up the case even though an appeals court has yet to review it.

But HousingWire readers know this argument is not new.

Back in 2017, the CFPB’s leadership structure was declared unconstitutional by the Court of Appeals for the District of Columbia Circuit in a 2-1 vote.

The CFPB fought that ruling, asking the court to rehear the case en banc, meaning that it wanted the entire court to hear the case, rather than the three judges who ruled on the case previously.

As it stands now, President Donald Trump cannot fire the CFPB director unless it’s for cause. The previous decision made the CFPB director fireable at will, but that’s not the case anymore as the case continues to be challenged in court.

And most recently, CFPB Director Kathy Kraninger weighed in, siding against her own job security by agreeing with the administration that the CFPB director should be allowed to be fired by the President at will.

But now, All American wants to send the decision straight to the Supreme Court, and is asking it to address the proper judicial remedy to redress the violation if the leadership structure is declared unconstitutional, meaning it could potentially undo enforcement actions taken because “actions taken by unconstitutionally structured agencies are nullities,” the petitioners argue.

However, the article explained that these actions could potentially be ratified by a constitutionally appointed director.

From the article:

While there are other challenges to the agency’s structure awaiting review, Gibson Dunn partner Helgi Walker, a lawyer for All American Checking Cashing, noted that their case is the ideal candidate because it asks “the absolutely essential question” of what an unconstitutionally-structured CFPB means as a “practical matter.”

“What good does it do for a litigant to ‘win’ on the constitutional question if the government action against him simply goes on as if the constitutional violation never happened, as some lower courts have held?” Walker said in a statement. “That is where the constitutional rubber hits the road, and if it is not addressed the current uncertainty about what should actually happen in cases involving the CFPB will only grow.”

Latest Articles

Best Practices for Developing Impactful Thought Leadership via Webinars

At HousingWire, webinars are one of our most popular products. A webinar enables clients to showcase their expertise, generate leads and interact with the HousingWire audience. Each webinar is custom and specific to each client – they decide the topic and bring the panelists. From there, HousingWire offers industry and content expertise, promotes, hosts and […]

Apr 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please