The Supreme Court has held that the single-director structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional, and has severed the provision that allowed for the director to be removable only “for cause.” In this holding the CFPB Director now serves “at will” and can be fired at the discretion of the president. This decision does not invalidate the CFPB as a whole, nor impact its funding structure through the Federal Reserve, rather it ensures the Bureau will continue to operate with a Director who serves at the will of the president moving forward.
Late last year, the National Association of REALTORS® submitted an amicus brief, along with the Mortgage Bankers Association and the National Association of Home Builders, calling for the Supreme Court to cause the least possible disruption to the nation’s housing and real estate markets with this decision. The Court’s decision is in line with NAR’s advocacy and should result in minimal disruption to the role of the CFPB and its past and future actions.
NAR will continue analyzing this decision and the impact on other potential independent agencies, such as the Federal Housing Finance Agency. Stay tuned to nar.realtor for the latest information.