RESPA News will be in the “fly on the wall” as the Consumer Financial Protection Bureau (CFPB) makes its argument before the U.S. Supreme Court. The question being addressed: whether the bureau’s funding structure is constitutional.

Almost a year ago, the Fifth Circuit Court of Appeals made a ruling on the bureau’s payday lending rule, rejecting most of the Community Financial Services Association of America’s arguments. However, the circuit court found merit in the trade organizations reasoning that the bureau’s funding structure was improperly “dually insulated.”

It held that because the bureau could request funds directly from the Federal Reserve, not as part of routine Congressional appropriations, and those funds were held in a separate fund in a Federal Reserve bank with the remainder not returned to the U.S. Department of Treasury at the end of the fiscal period, the CFPB was given, in essence, unlimited finances with little Congressional control. The Fifth Circuit court found this to be an impermissible delegation of Congress’s power, opening the door for all regulations and rules promulgated by the bureau to be challenged.

Over 30 amicus briefs have been filed for this case, ranging from the former CFPB Director John Michael “Mick” Mulvaney to a group of professors with expertise in constitutional law and early American history. Current and former members of Congress, legal foundations, and trade organizations like National Association of Federally-Insured Credit Unions and the Mortgage Bankers Association also gave input for the Supreme Court to consider.

Keep an eye on RESPA News’ X account @RESPANews as we listen to the parties’ arguments in front of the highest court in the land.

Want to see more of our coverage on this case?

• Circuit court rules CFPB structure unconstitutional
• CFPB ruling echoes through the industry
• CFPB files petition for cert with Supreme Court
• CFSA files opposition to CFPB cert, cross petition with SCOTUS
• CFPB responds to CFSA brief opposing cert in funding structure case
• Riley, Sterbcow explore CFPB funding structure case in webinar
• SCOTUS grants cert to hear CFPB funding structure case
• House subcommittee hears testimony on CFPB reform
• CFPB funding structure finds support in Second Circuit
• Petitioner’s brief filed with SCOTUS in CFPB funding structure case
• Congressional reps file amicus brief supporting CFPB in funding case
• Supreme Court justices set date for arguments in CFPB funding structure case
• Riley, Milano offer insight into CFPB funding structure case
• Over 130 lawmakers join amicus brief challenging CFPB funding structure