auto dealer in black and red logo
MenuMENU
SearchSEARCH

Justice Department Files Amicus Brief Against CFPB

In an amicus brief filed last Friday, the Justice Department called on the D.C. Circuit Court to uphold the appellate court's 2-1 ruling in a New Jersey-based mortgage company's closely-watched challenge of the CFPB's authority. The agency says it agrees with the court's unconstitutional ruling and 'at-will' remedy.

March 21, 2017
2 min to read


WASHINGTON, D.C. — Not only did the U.S. Department of Justice side with the federal appellate court’s Oct. 11 ruling that the Consumer Financial Protection Bureau (CFPB) ’s single-director structure is unconstitutional, the DOJ agreed with the three-judge panel’s remedy.

The enforcement agency’s opinion was contained in an amicus brief filed on Friday, March 17, with the U.S. Court of Appeals for the District of Columbia Circuit in New Jersey-based PHH Corp.’s closely-watched challenge of the bureau’s authority.

The DOJ told the D.C. Circuit it should uphold the three-judge panel’s 2-1 ruling because “there is a greater risk that an ‘an independent’ agency headed by a single person will engage in extreme departures from the President’s executive policy.”

“The panel correctly concluded that the proper remedy for the constitutional violation is to sever the provision limiting the President’s authority to remove the CFPB’s Director, not to declare the entire agency and its operations unconstitutional,” the DOJ stated, in part.

In February, the full D.C. Court of Appeals granted the bureau’s request to reconsider last October’s ruling that the bureau’s structure is unconstitutional, vacating a decision that gave the president the authority to remove the CFPB Director Richard Cordray at will.

Prior to the appellate court's October ruling, the CFPB director could only be removed for cause.

In its two-page order, the D.C. Circuit directed the parties to address specific questions, including whether the CFPB’s structure is consistent with Article II of the Constitution — which says the president must be able to remove executive officers at will — and if the court can avoid deciding that constitutional question given the panel’s ruling on the statutory issues in the case. If the bureau’s structure is ruled unconstitutional, the court will decide whether severing the for-cause provision is the proper remedy.

The case came about after the bureau fined New Jersey-based mortgage lender PHH Corp. for allegedly accepting kickbacks from mortgage insurers. The lender appealed the fine, which led to Tuesday’s decision. And as part of that ruling, the federal appeal court threw out the bureau’s $109 million fine against PHH.

“Republicans have said for years that the bureau is unconstitutionally structured,” House Financial Services Chairman Jeb Hensarling (R-Texas), one of the bureau’s harshest critics, said in a statement issued shortly after the DOJ filed its brief. “I applaud the Department of Justice for recognizing this unconstitutional CFPB must not stand and must not continue to harm the very consumers it is supposed to protect.”

Briefing in the case is scheduled to conclude by April 10, and the D.C. Circuit is scheduled to hear oral argument on May 24.

Originally posted on F&I and Showroom

More Dealer Ops

two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →
Headshots of two male executives
Dealer Opsby StaffMarch 24, 2026

IA American Appoints Two Execs

Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.

Read More →
Dealer Opsby StaffSeptember 8, 2025

Cox Automotive Acquires Inspection Firm

Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities

Read More →
Ad Loading...
Dealer Opsby StaffAugust 26, 2025

Assurant Expands Partnership With Holman

Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships

Read More →
Dealer Opsby Hannah MitchellAugust 26, 2025

Franchises, Throughput Down in First Half

A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.

Read More →
Dealer OpsAugust 25, 2025

How to Build a High-Performance Sales and F&I Team

Performance and profits start with people chosen and led the right way.

Read More →
Ad Loading...
Dealer Opsby Hannah MitchellAugust 19, 2025

Buy-Sells Up in Q2

Kerrigan metrics show there’s plenty of demand, though many sellers are waiting to pull the trigger.

Read More →