PHH v. CFPB: Beyond The Headlines, A Big Win For Industry

There was something for everyone in yesterday's long-awaited decision from the en banc D.C. Circuit in PHH Corp. v. CFPB. In the part of the decision that has garnered widespread attention, the D.C. Circuit held that the structure of the Consumer Financial Protection Bureau (CFPB) is constitutional.  At the same time, however, the court reinstated an earlier panel decision that soundly rejected every statutory argument advanced by the CFPB in the underlying adjudication while also holding that the agency had violated constitutional fair-notice principles.

Separation of Powers.  In a 7-3 vote, the en banc court held that the CFPB Director's for-cause tenure protections did not unconstitutionally restrict the President's removal power, even in light of the CFPB's single-director structure.  Rejecting the PHH panel's finding of a constitutional violation, the en banc court held that for-cause tenure protections were a "wholly ordinary" means of insulating independent