The U.S. Supreme Court this week will hear oral arguments on whether the leadership structure of the CFPB is constitutional.

Though it believes the CFPB’s leadership structure is unconstitutional, the Department of Justice in a new reply brief urged the Supreme Court to preserve the bureau for its “critical work.”

The CFPB’s latest supervisory highlight report red flags mortgage servicing violations, where firms failed to provide loss-mitigation notices in time after natural disasters.

It is widely expected that if a Democrat wins the presidential election, the new administration will once again strengthen the CFPB.

During a congressional oversight hearing, House Financial Services Committee members grilled CFPB Director Kathy Kraninger on the bureau’s interpretation of the abusiveness standard, plans to reform the qualified-mortgage rule and the controversial RESPA bulletin.

The consumer watchdog hiked its budget for 2020, taking its spending to levels last seen in 2017.

Before a district court in New York, the CFPB argued that its funding source, which falls outside the appropriations process, is constitutional. The case stems from a dispute arising out of a civil investigative demand.

In a new policy statement, the CFPB said it will rely on a cost-benefit analysis to deal with “abusiveness” claims in supervision and enforcement.

To provide greater clarity to financial institutions in meeting their legal obligations, the CFPB will add a new “compliance aids” category to its guidance.