Nearly two dozen Democratic senators urged the CFPB to immediately open an enforcement investigation into a servicer’s management of a student loan forgiveness program.
The CFPB nowadays is less active in addressing fair lending concerns via enforcement actions, particularly in cases relating to disparate impact. The bureau did not initiate or complete a single fair lending enforcement action from October 2018 to March 2019.
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.