By ruling the CFPB single-directorship unconstitutional, the Supreme Court had set in motion a myriad of future legal and political changes for the bureau and other federal agencies, like the FHFA.
With the clock ticking down to the presidential election and the Supreme Court ruling the CFPB’s leadership structure unconstitutional, the bureau is rushing to check certain items off its rulemaking agenda.
“The agency may therefore continue to operate, but its director, in light of our decision, must be removable by the president at will,” according to the majority opinion, written by Chief Justice John Roberts.
In her letter, Rep. Waters acknowledges the need to manage the risk associated with forbearance loans, bu recommends an alternative to the steep LLPAs leveled by FHA and FHFA. Instead, the congresswoman says those costs should be spread across the agencies’ broader single-family portfolios, resulting in “near-negligible costs on any individual loan.”