AFSA Joins Amicus in PHH Case

On March 10, AFSA joined several other trade associations in an amicus brief to the U.S. Court of Appeals for the District of Columbia in a case challenging the Consumer Financial Protection Bureau (CFPB). The case is PHH Corp. v. CFPB. It is now in front of the full court, after a petition for rehearing was granted. The case deals with CFPB Director Corday’s June 2015 order concluding that PHH violated the Real Estate Settlement Procedures Act (RESPA). The CFPB asked for the rehearing after a panel of judges ruled that the CFPB’s structure of a single director who can only be removed by cause is unconstitutional.

The joint trade amicus focuses on how the CFPB’s order against PHH conflicts with RESPA, governing regulations, and longstanding policy guidance upon which AFSA members and others have relied. The brief also argues that the CFPB’s order exceeded the CFPB’s statutory authority and violated fundamental tenets of administrative law and fair notice. The joint trade amicus does not address the constitutionality of the CFPB.

On the same day, PHH filed its opening brief and six other amicus briefs were filed. The next step in the case is oral argument, which is scheduled for May 24.