A federal court rejected last week complaints filed by a Texas bank, several states and a number of interest groups that allege that CFPB Director Richard Cordray’s appointment was unconstitutional and that the agency’s actions have caused harm.
At the time the suit was filed, Cordray had been appointed by President Obama, who used the power of recess appointments to fill the agency position. Cordray has since, however, been renominated and confirmed by the full Senate to a five-year term.
The court said in its ruling last week that the plaintiffs, including the State National Bank of Big Spring, Competitive Enterprise Institute, 60 Plus Association and the attorneys general of 11 states, had no standing to bring suit, adding that the suit’s claims of injury were “speculative.”
The suit complaints relate to the agency’s regulatory authority, remittance regulation, mortgage foreclosure rules, servicing rules and the authority to address unfair or deceptive practices. The plaintiffs have filed an appeal.