is set to hear arguments about a case on whether the way CFPB is funded violates the appropriations clause of the Constitution. The Fifth Circuit Court of Appeals ruled last year that since funding for the CFPB is not appropriated directly fromThe CFPB argued that that ruling was mistaken and asked the Supreme Court to adjudicate on the case in November. The case, titled Consumer Financial Protection Bureau v. Community Financial Services Association, will be heard on October 3.
Experts argue, as reported by institutions like the Financial Times, that the agency has helped lower mortgage delinquencies, as evidenced by second-quarter mortgage delinquencies dwindling reported by the MBA to their lowest level in decades. CFPB says its work for consumers has generated"approximately $14.4 billion in relief for consumers, and $1.7 billion in civil penalties."
"Mortgage Lenders depend on a lot of exemptions and guidance that has been promulgated by the bureau since its creation," John Coleman, a partner at Orrick, Herrington & Sutcliffe in Washington and a former Deputy General Counsel at the CFPB, told"A ruling that those rules are void, such that they never had any legal effect, could cause a lot of uncertainty about sort of what lenders obligations are going forward certainly, and also whether loans that were were extended 5-10...