The CFPB Lost...What's Next?

Posted by Nathan Knottingham on October 13 2016

So the CFPB lost the decision in the Court of Appeals PHH vs. CFPB...

What does that mean to you, me, and our industry?  Not much today actually, but remember that one small change on course today can mean a completely different destination in the future. 


There will be more coming in time and you can always catch us on! 

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October 12, 2016 Wednesday Update


Hey, what’s going on you guys. Ken Perry with your Weekly Update. I am on the farm, next to a cow, shooting my quick video for you.

I want to talk to you about what just happened. It is the CFPB being declared to have a structure that is unconstitutional. Now, just a little background on this: PHH is the mortgage company that went up against the CFPB. Typically, people settle with CFPB, you don’t fight them because it never works well. They went after them, fought back, and—just yesterday, we found out that—they won.

What that means for you is not a ton. Because, what happened is: for PHH, they get their money back, they won’t pay, and of course that will be appealed, we’ll see what happens with that. But, the big deal is, CFPB—their structure is unconstitutional which means they need some sort of check and balance like every department should. And so, what they’ve done is put the President of the United States over the CFPB’s director and that is fairly significant, but not much.

Here’s the biggest take away so I can keep this video short; I’ll do more on this later. The biggest take away for you is I think what this might do is put the CFPB in check as they do these examinations and these settlements because this just told mortgage companies that if you fight the CFPB, you might win. So, I anticipate we’ll see more cases against the CPFB where people don’t just settle but they actually fight back. We’re already seeing that in some Department of Justice cases right now where people are fighting back.  I think you’ll see industry fight back because industry has a little bit more power after this. Other than that, not a lot is going to change. I will be reading the entire case because I really want to read the order and what the judges said on that. So, I’ll be going through that. But, for now, just know it’s not going to do a lot, it’s not going to unwind any cases other than this one—that we know of—and it should be business as usual.

So, there’s your quick Wednesday Update; I will see you guys next Wednesday. I’m going to go back to feed this cow and those ones over there. I am on the road constantly, I had to pull over to shoot this video. We’ll see you guys later. Have a great week.


Tags: Compliance, Mortgage Lending



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