D.C. Circuit's PHH Ruling Reins in CFPB

On October 11, 2016, the U.S. Court of Appeals for the District of Columbia Circuit held in PHH Corporation v. Consumer Financial Protection Bureau, case no. 15-1177, that the CFPB's structure of a single independent director, removable only for cause, violates the separation of powers provisions of Article II of the Constitution. In addition, the Court unanimously (1) held that CFPB Director Richard Cordray's prior order that the CFPB could enforce its new interpretation of the Real Estate Settlement Procedures Act ("RESPA") violated PHH's constitutional due process rights and (2) rejected the CFPB's contention that it is not subject to any statute of limitations when bringing a RESPA enforcement action through the administrative adjudication process.