Between the Courts and Congress – Is the Future of the CFPB in Jeopardy?

    View Authors March 2017

    Throughout the nearly six years of its existence, the Consumer Financial Protection Bureau (CFPB or the “Bureau”) has been the target of attacks in various courtrooms and the halls of Congress. No doubt the previous administration and the then Democrat-controlled Congress designed the CFPB to withstand political winds (i.e., an independent agency not subject to congressional appropriations and headed by a single director appointed by the President, removable only for cause). At this point, however, President Trump, the Republican-controlled House and Senate and the courts are about to test its durability. Specifically, in the DC Circuit, a pending case between PHH Corporation (PHH) and the CFPB threatens the governance structure of the Bureau, and while the PHH case could ultimately decide the future of the Director’s position, several legislative proposals – should they become law – would challenge the very existence of the Bureau.