“We are confident that we will prevail before the full D.C. Circuit for PHH, which was subjected to a fundamentally unfair order promulgated by an unconstitutionally structured agency,” Gibson Dunn partner Helgi Walker said. “Importantly, although the separation of powers issues will be reheard, the court’s stay of the CFPB’s order remains in place.”
The D.C. Circuit’s decision Thursday likely came as a relief to proponents of the CFPB. Last month, top Democratic lawmakers and 16 state attorneys general unsuccessfully tried to intervene in the case, arguing that their participation was necessary to protect the CFPB in case the Trump administration abandoned the defense of the agency.
The full D.C. Circuit scheduled oral arguments for May 24, with briefing to begin on March 10.
PHH, a home mortgage provider, brought the constitutional challenge as part of its appeal of a CFPB enforcement action. In 2015, Cordray ordered PHH to disgorge $109.2 million after finding that the company had engaged in a kickback scheme.
Correction: An earlier version of this story misstated when oral arguments will be held. The court will hear the case on May 24.
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