Ben Olson Quoted in Bloomberg BNA Article, "PHH Corp. v. CFPB: Six Issues to Watch"
August 5, 2016
Ben Olson was quoted in Chris Bruce's Bloomberg BNA article, "PHH Corp. v. CFPB: Six Issues to Watch," on August 5, 2016.
A federal appeals court is soon expected to release one of the most eagerly awaited opinions in years when it rules on a challenge to a Consumer Financial Protection Bureau (CFPB) enforcement action by PHH Corp ( PHH Corp. v. Cons. Fin. Protection Bureau, D.C. Cir., No. 15-cv-01177, argued 4/12/16 ). Bloomberg BNA asked financial services lawyers what they’ll look for when the opinion finally comes down.
PHH, a mortgage company in Mount Laurel, N.J., wants the U.S. Court of Appeals for the District of Columbia Circuit to vacate a June 2015 enforcement ruling by CFPB Director Richard Cordray that said PHH violated anti-kickback provisions in Section 8(a) of the Real Estate Settlement Procedures Act (RESPA) and had to give up $109 million in what Cordray said were ill-gotten mortgage reinsurance premiums.
How the court handles the constitutional claim will set the framework for the decision and its impact, said Benjamin K. Olson, formerly the CFPB's deputy assistant director for the Office of Regulations and now a partner in the Washington, D.C., office of BuckleySandler
“There are two paths that the court can take,” Olson told Bloomberg BNA Aug. 2. “Do they rule on RESPA and the specific issues of interpretation, or are they going to go right to the constitutionality of the Bureau? Those are two very different cases; the RESPA questions are important in the relatively small world of regulatory wonks, while the constitutional question will have dramatic implications for how Congress sets up and delegates power to agencies generally.”