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April 6, 2016

Appeals Court to Hear Argument on the Authority of CFPB Director Cordray

The U.S. Court of Appeals for the District of Columbia has asked the Consumer Financial Protection Bureau (CFPB) to “justify its structure of being led by a powerful single director” in a hearing next week.

The hearing is a result of a lawsuit filed by New Jersey mortgage lender, PHH Corp., which says CFPB Director Richard Cordray “overstepped his authority by overturning a $6.5 million fine imposed (against the company) by an internal judge at his agency and deciding instead to impose a $109 million fine.“

The court has asked the CFPB and PHH to prepare arguments on two questions: “which other independent agencies have ever had a single director and what would happen if that director could be removed.”

Read the full Wall Street Journal story here

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