John C. Redding quoted in an American Financial Services Association article, “Circuit court upholds constitutionality of CFPB structure”
American Financial Services AssociationJohn C. Redding
John C. Redding was quoted on January 31, 2018 in an American Financial Services Association article, “Circuit court upholds constitutionality of CFPB structure,” which discussed the D.C. Circuit Court of Appeals 7-3 ruling to keep the constitutionality of the Consumer Financial Protection Bureau’s independent single-director structure. The article stated “In the case PHH Corp. v. CFPB, the court found that a provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) that limits the president’s ability to remove the CFPB director during his or her 5-year term ‘does not violate the president's authority to appoint and remove executive branch officers.’”
Redding noted that the court also reinstated the prior panel’s opinion on the subject of RESPA. Section 8 of RESPA permits the payment of captive reinsurance premiums (and other fees) as long as the service is actually performed and the amount paid for that service reflects a reasonable market value for the services provided. Even if former Director Richard Cordray were correct in his interpretation, the retroactive reversal of the federal government’s prior position would be unlawful as to PHH. The court also made clear that the three-year statute of limitations applies in the administrative enforcement context. These points may present meaningful opportunities across all types of markets. The court did not address the question of whether the appointment of the ALJ was defective.