The court-appointed CFPB defender said the petition challenging the bureau’s structure is “remarkably weak.” According to him, there is no basis “to take the grave step of invalidating an act of Congress.”
Most briefs filed in the Seila Law v. CFPB case before the Supreme Court argue that the “for-cause” removal protection is not severable, and the court should invalidate the CFPB in its entirety or send the statute back to Congress.
Democratic senators have asked the Government Accountability Office to investigate whether the CFPB has fulfilled its statutory obligation to combat discriminatory lending practices. Separately, Rep. Maxine Waters questioned the bureau’s potential hiring of an enforcement director.
The U.S. Supreme Court agreed to review a case challenging the CFPB’s constitutionality. The court directed both parties to file briefs on a possible remedy.
Bryan Schneider, who previously led the Illinois Department of Financial and Professional Regulation, has been named associate director of the supervision, enforcement and fair lending division at CFPB.
In yet another volte-face, the CFPB now believes the rule limiting the president’s ability to fire the bureau’s head is unconstitutional, according to a brief filed last week by the Department of Justice.
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