Messer Applauds Dismissal of CFPB Case

Press Release

Date: June 7, 2018
Location: Washington, DC

U.S. Rep. Luke Messer (IN-06) today applauded the Consumer Financial Protection Bureau (CFPB) for dismissing its case against mortgage lender PHH Corp.

"I applaud Director Mulvaney's decision to dismiss this case and restore the rule of law," Messer said. "The CFPB never had the authority to retroactively impose fines beyond the statute of limitations and I'm glad the Trump Administration is putting an end to this lawless behavior."

PHH Corporation v. CFPB revolves around the Real Estate Settlement Procedures Act, which bans "kickbacks" in real estate transactions. Any fines imposed because of a violation must be levied within the 3 year statute of limitations. The CFPB claimed the statute of limitations did not apply in certain circumstances, without any statutory authority, and retroactively imposed fines on the PHH Mortgage Corporation for alleged violations to RESPA dating back to 1995.

On October 11, 2017, the DC Circuit Court struck down the illegal fines and held that the Bureau's structure, with a single director only removable "for cause," was unconstitutional.

Messer previously authored legislation to ensure that the CFPB follows the statute of limitations and that entities being pursued by the CFPB are treated fairly. Messer's legislation, the RIGHTS at the CFPB Act, was included in the H.R. 10, the Financial CHOICE Act, which passed the House on July 13, 2017.

Messer's legislation was also included in H.R. 5485, the Financial Services and General Government Appropriations Act, 2017, which passed the House on June 15, 2016.