Defendants In CFPB Enforcement Action Renew Challenge To Validity Of Director’s Appointment

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On February 11, a law firm and related parties sued by the CFPB for allegedly deceiving consumers through a network of mortgage loan modification businesses filed a brief in which they renewed a challenge to the CFPB Director’s appointment. Opp. to Receiver’s Request for Payment, CFPB v. Chance Edward Gordon, No. 12-6147 (C.D. Cal., filed Feb. 11, 2013). The defendants cite a recent opinion from the U.S. Court of Appeals for the D.C. Circuit that held appointments to the National Labor Relations Board made by President Obama in January 2012 during a purported Senate recess were unconstitutional, and argue that CFPB Director Cordray was appointed on the same day, and in the same manner found to be constitutionally invalid by the D.C. Circuit Court. The defendants stated in their motion that they have propounded Requests for Admissions regarding the date and nature of Mr. Cordray’s appointment, and likely will follow with a motion for summary judgment.

Topics:  Barack Obama, CFPB, CFPB v Chance Edward Gordan, Mortgages, NLRB, Richard Cordray, Summary Judgment

Published In: Civil Procedure Updates, Consumer Protection Updates, Elections & Politics Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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