DC court finds CFPB structure unconstitutional

A three-judge panel on the DC Circuit Court of Appeals declared the CFPB structure unconstitutional. According to the panel, the Bureau violated the Constitution’s separation of powers doctrine because its sole director, Richard Cordray, is not sufficiently accountable to the president. In its decision, the court explained that CFPB’s single director leadership structure is unlike other independent agencies that are not accountable to the president because their leadership is checked by multiple commissioners or board members.

Proposed changes to higher-priced mortgage loan exemption threshold

changes to higher-priced mortgage loan exemptionThe CFPB, along with the OCC and Federal Reserve, published a proposed rule and request for public comment in the Federal Register regarding the Appraisals for Higher-Priced Mortgage Loan Exemption Threshold. The agencies published proposed rules amending the official interpretations for regulations implementing section 129H of the Truth in Lending Act (TILA). Section 129H of TILA establishes special appraisal requirements for “higher-risk mortgages,” which are termed “higher-priced mortgage loans” or “HPMLs.”