CFPB Rules Overturn Seen as Unlikely
Although the District of Columbia Circuit Appeals Court invalidated President Barack Obama’s recess appointments to the National Labor Relations Board and potentially overturned the board’s decisions since early 2012, credit unions shouldn’t assume the ruling means the CFPB will meet the same fate, said NAFCU President/CEO Fred Becker.
CFPB Director Richard Cordray was appointed the same day as the NLRB leaders during a period in which the Senate was in pro-forma session. The NLRB decision sets a precedent that could potentially invalidate Cordray’s appointment and CFPB regulations that were finalized last year.
Becker said if the suit goes to the Supreme Court, the highest court would clarify whether the CFPB already had authority over depository institutions before Cordray’s appointment, which would determine whether or not credit unions could put up a legal challenge.
However, Becker said he thinks the matter will be resolved out of court.