Supreme Court Upholds NAR’s View on CFPB
June 29, 2020
The U.S. Supreme Court ruled Monday that the single-director structure of the Consumer Financial Protection Bureau is unconstitutional. With this decision, the bureau’s director can no longer be removed from the position only for cause but instead will serve at the discretion of the president at will.
For REALTORS®, the most notable outcome is that the decision does not invalidate the CFPB as a whole and ensures the bureau will operate with a director who serves at the will of the president moving forward.
Late last year, the National Association of REALTORS® submitted an amicus curiae brief, along with the National Association of Home Builders and the Mortgage Bankers Association, calling for the Supreme Court to cause the least possible disruption to the nation’s housing and real estate markets with this ruling. Today’s announcement is in line with NAR’s advocacy and should result in minimal disruption to the role of the CFPB and its past and future actions.
The CFPB aims to promote fairness and transparency for mortgages and credit cards, among other consumer financial products and services, as well as help consumers make prudent financial decisions. Creation of the bureau was authorized by the Dodd-Frank Act of 2010, a response to the financial crisis and Great Recession. The Act changed the structure of financial regulation in the U.S.
Updated: November 25, 2020