Challenge to Corday’s Appointment Lacks Standing

A complaint filed last June by a Texas bank and two non-profit organizations challenged the validity of Richard Cordray’s recess appointment as head of the Consumer Financial Protection Bureau (CFPB) because the Senate was technically not in recess, according to HousingWire. The bank, State National, contends the CFPB’s Unfair, Deceptive and Abusive Acts or Practices (UDAAP) caused the bank to leave the mortgage lending business. The CFPB filed a motion to dismiss the case because the bank lacks standing, meaning State National cannot show sufficient connection to and harm from the appointment, nor does it have authority to challenge the constitutionality of a recess appointment. MHProNews has learned several governmental agencies, including the Treasury Department as well as the Securities and Exchange Commission, agree the bank and the other two organizations do not have standing.

(Image credit: CNNMoney)

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