The constitutionality of the Consumer Financial Protection Bureau (CFPB) is being attacked in a case it brought against Ocwen.
The CFPB and several attorneys general sued Ocwen in connection with its foreclosure and loan servicing activities. The CFPB claims that Ocwen failed to comply with terms of a settlement agreement it reached with the CFPB and most of the states in 2014.
Ocwen did not waste any time in challenging the authority of the CFPB. The case was filed on April 21, 2017. Four days later, Ocwen filed a motion challenging the constitutionality of the CFPB. Ocwen invited the U.S. Attorney General to enter an appearance in the case. The crux of the challenge against Ocwn is that it is run by a single director that the president may not remove at will. This could constitute a violation of the separation of powers clause of the Constitution.