Lee Stroh December 11, 2019

Newsletter - December 2019

Early next year, the U.S. Supreme Court will hear oral arguments in Seila Law v. CFPB, a case that challenges the constitutionality of the Consumer Financial Protection Bureau, the regulatory agency created by the Dodd-Frank Act in 2010 that oversees consumer financial products and services.

The suit argues that the provision of the law that allows the president of the United States to remove the CFPB director only for cause (rather than at will) violates the constitutional separation of powers (the idea that the U.S. Constitution divides the different functions of government among the executive, judicial and legislative branches).

The Trump administration recommended the high court take on the case in a brief filed in September“The structure of the Bureau, including the for-cause restriction on the removal of its single director, violates the Constitution’s separation of powers,” the brief reads.

If the justices agree, it could have serious repercussions on the authority of the agency, which Republicans have criticized as having too much authority and too little oversight. Such a ruling could potentially unravel everything the CFPB has done since its creation.

But Mark Dabertin, an attorney in law firm Pepper Hamilton’s Financial Services Practice Group, warns that the current structure “allows the incumbent Director to exercise a degree of independence that would be lost if the president could replace the Director at will.” In that case, he said, “the CFPB would likely be viewed as purely political and its actions would constantly be at risk of being undone.” 

We know where Supreme Court Justice Brett Kavanaugh stands. When he was a judge on the U.S. Court of Appeals for the District of Columbia Circuit in 2016, he authored a majority panel opinion in PHH Corp v. CFPB declaring the agency unconstitutional. That decision was ultimately overturned by the full court in 2018.

The CFPB has argued that the provision that limits the president’s ability to remove the director can be separated from the rest of the Dodd-Frank Act, which would enable the court to rule the provision unconstitutional without invalidating the entire bureau.

It’s up to the Supreme Court now.

Let Blue Streak Docs manage your document retrieval and property reports in the new year to help you protect your portfolio. If you haven’t worked with us before, give us a try and get your 5th order FREE!

 

Employee Of The Month

“Congratulations to Tali on winning Employee of the Month! This has been a crazy month, and Tali has gone so far above and beyond our expectations. Our Titles Department has been extremely busy lately and Tali has really stepped up to the plate. From working close to 60 hours some weeks, to coming in on weekends to make sure the department didn't fall behind, to taking initiative on new projects (and ordering tons of tax certificates like a pro!) she's really shown just how amazing she is, especially under pressure. Thank you for everything, Tali! This month would not have been nearly as successful without all your hard work. You're incredible!”


Try us out with 5 orders and your 5th order is FREE!