Justice Department Gets Chance to Whack the CFPB in Florida Court
A federal judge in Florida has opened an opportunity for the U.S. Justice Department to undercut the Consumer Financial Protection Bureau in one of its biggest cases, teeing up a new fight as the Trump administration and Republicans in Congress ramp up their own attacks against the Obama-era agency.
August 03, 2017 at 05:33 PM
3 minute read
A federal judge in Florida has opened an opportunity for the U.S. Justice Department to undercut the Consumer Financial Protection Bureau in one of its biggest cases, teeing up a new fight as the Trump administration and Republicans in Congress ramp up their own attacks against the Obama-era agency.
The CFPB sued Ocwen Financial Corp. in April, alleging the West Palm Beach-based company “has repeatedly made mistakes and taken shortcuts at every stage of the mortgage servicing process.” This week, U.S. District Judge Kenneth Marra of the Southern District of Florida approved Ocwen's motion to invite the Justice Department to share its view—crafted under the leadership of U.S. Attorney General Jeff Sessions—that the CFPB's structure is unconstitutional.
The dispute will mark the latest example of two federal agencies clashing in court. The Justice Department last month, staking a position against the U.S. Equal Employment Opportunity Commission, said sexual orientation is not protected under federal civil rights laws. In the U.S. Supreme Court, the Justice Department reversed course to argue against the lawfulness of employment contracts that ban class actions.
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