CFPB vs. PHH: Two-Year Battle Coming to a Head

first_img Tagged with: Americans for Financial Reform Brian Marshall CFPB Consumer Actions Consumer Financial Protection Bureau Court of Appeals for the District of Columbia Circuit Frank-Dodd Act Linda Sherry PHH Corporation President Trump Richard Cordray  Print This Post Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Events, Featured, Government, News Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Previous: Foreclosures Hit 10-Year Low, Despite April Uptick Next: Buying Remains the Cheaper Option, but for How Long? About Author: Brianna Gilpin The highly anticipated hearing for the Consumer Financial Protection Bureau (CFPB) and PHH Corporation took place Wednesday in front of the Court of Appeals for the District of Columbia Circuit. The Court of Appeals agreed to revisit their October decision that the structure of leadership in CFPB is unconstitutional brought by PHH.In October, the three-judge panel for the U.S. Court of Appeals decided the agency was not organized under checks and balances and therefore had to strike “for cause” language out of the leadership structure originally obtained from the Dodd-Frank Act. CFPB challenged this verdict and successfully appealed for an “en banc” review, meaning all the judges on the Appeals Court would be in attendance for the rehearing.The broadest issue in the case, according to Brian Marshall, Policy Counsel for the Americans for Financial Reform, is whether CFPB is able to remain an independent agency headed by a single director. PHH, which is accused of overcharging its mortgage customers, is arguing that the CFPB cannot be independent and that it has to report directly to the president. The CFPB argued that Congress is able to structure independent agencies as it has with financial regulators for quite a long time and they maintain their independence by keeping their heads in place across administrations.“We think that [the case] is very similar to the Federal Trade Commission case that the Supreme Court ruled on over 80 years ago, and it’s very promising that the full court questioned the panel decision and is willing to take up the case,” Marshall said.Michael Barr, Professor and Faculty Advisor at the University of Michigan Law School and Gerald R. Ford School of Public Policy, said the thought that the CFPB should not be able to operate as an executive branch agency or as a multi-member commission is missing the point.“I think the Constitution requires agencies to be accountable but there are lots of ways to achieve that,” Barr said. “The CFPB, in my judgment, is an accountable and effective agency and one that is also independent, and I think that it should be affirmed.”If the court decides the CFPB is unconstitutional, the outcome will likely be striking the term “for cause”, however the change will give President Trump the option to fire Richard Cordray, CFBP Director, immediately.“The bureau’s first director, Richard Cordray, has been very fair in considering industry side of things all along,” Linda Sherry, Consumer Actions Director of National Priorities said. “He’s very measured in most of his actions that he takes and that the bureau takes.”Sherry said PHH, who brought the lawsuit in 2015, illegally referred consumers to mortgage insurers. This violates The Real Estate Settlement Procedures Act (RESPA), which holds that a mortgage company cannot receive kickbacks for loans that closed on or after a date in 2008.“I think the most important aspect of this is it’s calling into question the ability of the CFPB to do its work to protect consumers,” said Sherry. “It’s a red herring, basically, in some ways. It’s keeping the consumer bureau from doing its good work, taking resources from it in order to have to fight this sort of thing, and just appears to be politically motivated.”In the October hearing, the court wrote that because the director alone runs the agency without Presidential supervision, and in light of the CFPB’s broad authority over the U.S. economy, the Director has significantly more unilateral power than any single member of any other independent agency.“By “unilateral power,” we mean power that is not checked by the President or by other colleagues,” the court wrote. “Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.”Sherry hopes that the full panel does not agree with the smaller panel. She and the CFPB feel that they are constitutional because there is room for a director to be removed for cause and if companies do not like what the bureau does, they can take them to court.“It seems to us that there’s room for everyone to have their right heard in the end in this scenario in which a company may be unhappy with something that CFPB does,” Sherry said.According to Marshall, the hearing went well for those that believe the CFPB should continue to be independent.“The court seemed to recognize that a single director is highly accountable and, in fact, more accountable than a multi-member commission because you know who’s making the decisions and the president has the authority to remove that person if they’re doing a bad job. All in all I’m just very pleased with how the argument went,” Marshall said.Though a decision likely will not be made until 2018, comments from Wednesday’s hearing give a good look into the possibilities that are to come. Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe May 24, 2017 2,523 Views Home / Daily Dose / CFPB vs. PHH: Two-Year Battle Coming to a Head Americans for Financial Reform Brian Marshall CFPB Consumer Actions Consumer Financial Protection Bureau Court of Appeals for the District of Columbia Circuit Frank-Dodd Act Linda Sherry PHH Corporation President Trump Richard Cordray 2017-05-24 Brianna Gilpin CFPB vs. PHH: Two-Year Battle Coming to a Head Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

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2 people with Covid-19 died in NI

first_img Facebook Homepage BannerNews 2 people with Covid-19 died in NI DL Debate – 24/05/21 Twitter Google+ WhatsApp Loganair’s new Derry – Liverpool air service takes off from CODA Two more people with Covid-19 have died in Northern Ireland.The death toll has now risen to 570.109 new cases have been detected in the past 24 hours, with the total number of positive tests now standing at 8,423. WhatsApp Google+ News, Sport and Obituaries on Monday May 24th center_img Important message for people attending LUH’s INR clinic RELATED ARTICLESMORE FROM AUTHOR Previous article9 staff members of Donegal restaurant test positive for Covid-19Next articleDriver appears in court in Donegal after driving on three wheels News Highland Pinterest Facebook Twitter Pinterest Nine til Noon Show – Listen back to Monday’s Programme By News Highland – September 14, 2020 Arranmore progress and potential flagged as population grows last_img read more

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Davies’ late try seals Scarlets win

first_imgJames Davies scored a late try as Scarlets beat Ulster 22-13 at Parc y Scarlets to keep their chances alive of reaching the knockout stages of the Champions Cup. Scarlets were forced into a late change when Wales lock Jake Ball pulled out with a virus, with George Earle coming into the second row. For Ulster, centre Luke Marshall returned after recovering from a knee injury sustained playing for the Ulster Ravens in October. It was Scarlets who made the early inroads on the scoreboard, opening up a 6-0 lead in the opening quarter through two Priestland penalties, the first after Franco van der Merwe was penalised at a line-out and another when Ulster hands slowed ball at a ruck. Another useful attack from the home side forced Van der Merwe offside as Priestland made it three out of three. And it was 12-0 after 33 minutes as Priestland found the target again after Rory Best handled the ball at a ruck. Priestland sent a 40-metre attempt wide and was short with another shot but an 11-3 penalty advantage at the break had already taken its toll. But it took Ulster only 90 seconds after the restart to break their duck, with Luke Marshall and Darren Cave combining effectively twice for Cave to go in under the posts and Humphreys converting. Scarlets had put themselves under pressure when Rhodri Williams’ box kick had gone straight into touch from just outside the 22. Priestland was wayward with another penalty after Ulster continued to struggle at the scrum. Ulster also had a chance to cut the deficit further but Humphreys was wide of the target with his first penalty shot on 55 minutes. With Rhys Priestland kicking 17 points Scarlets have gone second in Pool Three with games against Toulon and Leicester remaining in January. Ulster could only manage a losing bonus point despite a Darren Cave try, two penalties from Ruan Pienaar and a conversion from Ian Humphreys. Press Association But Scarlets got on the scoreboard next with a Priestland penalty which went over via the help of the right upright to take the home side into a 15-7 lead on 61 minutes. Referee Doyle lost his patience with the Ulster scrum and sin-binned tight-head prop Declan Fitzpatrick on 65 minutes. But despite being down to 14 men Tommy Bowe broke through the Scarlets defence before Cave could not hold on to what would have been a try-scoring pass. But Pienaar kicked two penalties, one from close to halfway, in the space of three minutes to cut the deficit to only two points. However, on 76 minutes Pienaar missed a third penalty which would have given Ulster the lead. And the contest but was put to bed two minutes from time when flanker Davies intercepted the ball from an Ulster scrum to go over under the posts. Priestland added a drop-goal conversion. last_img read more

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