Lower courts have started to put on hold CFPB enforcement litigation, pending a final decision by the Supreme Court on whether the bureau’s single-director leadership structure is constitutional.
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.
CFPB Director Kathy Kraninger was grilled by Democratic lawmakers regarding enforcement actions during hearings on Capitol Hill. Other topics such as fair lending, innovation policies and qualified-mortgage patch were also on the agenda.
All American Check Cashing’s petition before the SCOTUS presents a new question: what is the remedy if the bureau’s leadership structure is found to be unconstitutional?
CFPB Director Kathy Kraninger has adopted a balanced approach in public enforcement actions in recent months, according to an analysis by one law firm.