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The CFPB filed an order Thursday dismissing its case with PHH Corporation. The lawsuit came from a 2015 fine levied by the bureau on PHH Corp. over a Real Estate Settlement Procedures Act (RESPA) issue. The case also raised questions as to the bureau's constitutionality.

The case largely concluded last month as PHH said it would not appeal a January ruling that upheld the constitutionality of the CFPB's single-director structure. NAFCU remains supportive of a commission-led CFPB in lieu of its current leadership structure.

The January ruling by the U.S. Court of Appeals for the D.C. Circuit upheld the CFPB's constitutionality – reversing the court's panel opinion from 2016 regarding the constitutional question. However, in a win for the credit union industry, the court did reinstate the October 2016 panel's decision regarding the RESPA issue, which held that former CFPB Director Richard Cordray's interpretation of RESPA was incorrect so the resultant $109 million penalty levied on PHH was invalid. NAFCU filed an amicus brief in support of PHH in this case.

However, the U.S. Court of Appeals for the Fifth Circuit agreed to hear a challenge to the CFPB's constitutionality. This appeal was requested by defendants accused by the CFPB in 2016 of engaging in unfair payday lending conduct.

NAFCU will monitor the suit for its impact on credit unions.

Current Acting CFPB Director Mick Mulvaney has advocated for a commission-led CFPB. NAFCU has long advocated for this change, and is supportive of the Financial Product Safety Commission Act (H.R. 5266), which would accomplish that.