Two lawmakers join battle between the CFPB and PHH

Housingwire:

While the landmark case between PHH and the Consumer Financial Protection Bureau awaits a decision on whether the full Court of Appeals will rehear the case, more politicians are publicly voicing their support for the bureau.

A new update from the CFPB Monitor stated that Sen. Sherrod Brown, D-Ohio, and Rep. Maxine Waters, D-Calif., who are, respectively, the Ranking Members of the Senate Banking Committee and the House Financial Services Committee, filed a motion with the D.C. Circuit seeking to intervene in the PHH appeal.

The motion comes shortly after a similar motion from a dozen Democratic state attorneys general.

The 17 attorney generals said that the election of Donald Trump compelled them to intervene in the CFPB lawsuit. “When PHH filed the original petition for review in June, 2015, there was little reason for the State Attorneys General to intervene. At that time, the CFPB still had an independent Director and was fully committed to seeking rehearing to challenge the panel’s ruling and defend the constitutionality of the bureau’s independent structure,” the AGs state in their motion to intervene.

“But as a result of the presidential election,” the AGs continued, “the situation has changed.”

Now, both Brown and Waters are following suit.

From the CFPB Monitor:

The new movants rely primarily on the argument that they cannot rely on the CFPB under the Trump Administration to adequately represent their interest in defending the CFPB’s status as an independent agency.

As grounds for why they have a legally protected interest which would be impaired by the litigation, Senator Brown and Representative Waters point to their votes for the Dodd-Frank Act and claim that if the CFPB, acting at the new Administration’s direction, does not defend its constitutionality, “movants’ votes to establish the Bureau as an independent agency will be nullified without full judicial review of the constitutional question presented in this case.” 

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