CFPB Chief Cordray’s Recess Appointment Actions Survive Suit
- Judge defers to appeals court on separation of powers question
- Big Spring, Texas, bank loses much of case over agency’s power
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The Consumer Financial Protection Bureau and director Richard Cordray defeated a legal challenge to actions taken by the agency while he was a 2012 recess appointee of President Barack Obama, with a judge delaying her decision on more resonant questions about the CFPB’s powers under the U.S. Constitution.
U.S. District Judge Ellen Segal Huvelle in Washington said she would hold off on that decision until a separate suit raising the same constitutional issue is resolved by the U.S. Court of Appeals for the District of Columbia. A three-judge appellate panel heard arguments in April in that case brought by New Jersey mortgage services company PHH Corp.