This week, the U.S. Court of Appeals for the Second Circuit ruled the Consumer Financial Protection Bureau’s (CFPB) funding structure is constitutional. Their ruling indicates the structure was authorized by Congress and bound by specific statutory provisions.
This decision is of particular interest to the lending world since the U.S. Supreme Court granted the CFPB’s petition to review the decision in Community Financial Services Association of America Ltd. v. CFPB (CFSA v. CFPB) out of the Fifth Circuit. The Fifth Circuit Court of Appeals found the CFPB’s funding structure unconstitutional contending the structure violates the separation of powers and is “double insulated” from congressional review. Last week, the Supreme Court granted the motion to extend the time to file the briefs on the merits. Even with extensions, there are expectations to hear oral arguments early in the Supreme Court’s next term beginning in October 2023.
For more information about the Second Circuit’s ruling or the CFSA v. CFPB filing extensions, please visit the links below.
Links:
20-3471_opn.pdf (uscourts.gov)
20230310092738213_22-448 CFPB v. Consumer Financial Ltr Brief.pdf (supremecourt.gov)