{"id":1809,"date":"2018-01-31T22:10:00","date_gmt":"2018-01-31T22:10:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2018\/01\/31\/cfpb-declared-constitutional\/"},"modified":"2025-03-13T02:31:50","modified_gmt":"2025-03-13T02:31:50","slug":"cfpb-declared-constitutional","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2018\/01\/31\/cfpb-declared-constitutional\/","title":{"rendered":"BREAKING: Court of Appeals reverses earlier ruling, declares CFPB constitutional"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>\u201c It is no surprise that this full appellate court reversed its own findings previously made by a three judge panel of the same appellate court. &nbsp;No surprise at all given that then senate majority leader Reid and then president Obama packed the court with left leaning judges who support any and all Federal agency rulings &#8211; whether constitutional or not. &nbsp;This case is headed for either review by US Supreme Court or amendment by Congress. &nbsp;To many constitutional legal experts the structure of the CFPB is clearly unconstitutional.\u201d<\/p>\n<p><!--more--><\/p>\n<p>&nbsp;<\/p>\n<p>In a stunning reversal of its&nbsp;<a href=\"http:\/\/preprod.housingwire.com\/articles\/38252-phh-wins-landmark-victory-cfpb-ruled-unconstitutional\">previous decision<\/a>, the full Court of Appeals for the District of Columbia Circuit ruled Wednesday that the&nbsp;<strong><a href=\"?s=CFPB\">Consumer Financial Protection Bureau<\/a>&nbsp;<\/strong>is constitutionally structured.<\/p>\n<p>The decision reverses the court\u2019s&nbsp;<a href=\"http:\/\/preprod.housingwire.com\/articles\/38252-phh-wins-landmark-victory-cfpb-ruled-unconstitutional\">October 2016 decision<\/a>&nbsp;that declared the CFPB\u2019s leadership structure unconstitutional by a 2-1 vote and vacated a $100 million fine levied by the CFPB against&nbsp;<strong>PHH Corp<\/strong>.<\/p>\n<p>\u201cNone of the theories advanced by PHH supports its claim that the CFPB is different in kind from the other independent agencies and, in particular, traditional independent financial regulators,\u201d the court\u2019s ruling states.<\/p>\n<p>\u201cThe CFPB\u2019s authority is not of such character that removal protection of its Director necessarily interferes with the President\u2019s Article II duty or prerogative,\u201d the ruling continued. \u201cThe CFPB is neither distinctive nor novel in any respect that calls its constitutionality into question. Because none of PHH\u2019s challenges is grounded in constitutional precedent or principle, we uphold the agency\u2019s structure.\u201d<\/p>\n<p>The court also ruled that PHH\u2019s challenge, if successful, would have changed the face of government as we know it.<\/p>\n<p>From the court\u2019s ruling (emphasis added by HousingWire):<\/p>\n<blockquote>\n<p><em>Wide margins separate the validity of an independent CFPB from any unconstitutional effort to attenuate presidential control over core executive functions. The threat PHH\u2019s challenge poses to the established validity of other independent agencies, meanwhile, is very real. PHH seeks no mere course correction; its theory, uncabined by any principled distinction between this case and Supreme Court precedent sustaining independent agencies, leads much further afield.&nbsp;<strong>Ultimately, PHH makes no secret of its wholesale attack on independent agencies\u2014whether collectively or individually led\u2014that, if accepted, would broadly transform modern government.<\/strong><\/em><\/p>\n<p><em>Because we see no constitutional defect in Congress\u2019s choice to bestow on the CFPB Director protection against removal except for \u201cinefficiency, neglect of duty, or malfeasance in office,\u201d we sustain it.<\/em><\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; \u201c It is no surprise that this full appellate court reversed its own findings previously made by a three judge panel of the same appellate court. &nbsp;No surprise at all given that then senate majority leader Reid and then president Obama packed the court with left leaning judges who support any and all Federal [&hellip;]<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[],"class_list":["post-1809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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