Jonathan Kolodziej Quoted in National Mortgage Professional on SCOTUS Decision on CFPB Funding
May, 2024 - Birmingham, Alabama
Bradley partner Jonathan Kolodziej was quoted in National Mortgage Professional on a ruling from the U.S. Supreme Court that deemed the funding structure for the Consumer Financial Protection Bureau (CFPB) as constitutional.
The Supreme Court's decision undermines a challenge that sought to limit the power of government agencies and reverses a lower court's decision from 2020, in which the federal appeals court in New Orleans held that the CFPB’s funding violated the Constitution’s Appropriations Clause because it improperly shielded the Bureau from congressional supervision.
The final verdict isn't very surprising, particularly in light of the questions the justices asked during oral arguments in October 2023, said Kolodziej.
"While many may have hoped that this decision could have been a catalyst for reform of the CFPB – specifically, to weaken the Bureau’s independence," he clarified, "had the Court found that the CFPB’s funding structure is unconstitutional, significant questions were looming about the effect that would have had on prior rulemakings, enforcement matters, and many other actions taken by the CFPB that the industry has relied upon.”
The highly anticipated decision, "perhaps once and for all, puts to bed questions about whether the CFPB’s structure is constitutional," Kolodziej added.
The full article, “Supreme Court Upholds CFPB Funding Structure,” was published by National Mortgage Professional on May 16, 2024.
