Fannie Mae-No Politics (FNMA)

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Industry Warns of Major Issues Stemming From CFPB at Supreme Court

Tues May 16, 2023 - [e-mail]



The Mortgage Bankers Association, National Association of Home Builders and National Association of Realtors
filed an amicus brief in a pending Supreme Court case over the constitutionality of the Consumer Financial Protection
Bureau’s funding structure, arguing that any ruling shouldn’t undermine other bureau regulations.

The groups said they were submitting the brief to highlight “potentially catastrophic” consequences for the mortgage
and real estate markets.

They said virtually all residential real estate transactions depend on compliance with CFPB rules.

“Thus, this court should take care not to call into question current CFPB regulations, including those governing
the real-estate financing industry, which could lead to immediate and intense disruption to the housing market,
harming both consumers and the broader economy,” they said.

The trade groups said that if the statute governing the CFPB’s funding is found unconstitutional, the Supreme Court
should sever the offending provisions from the statute. Further, they said the court should consider granting “de facto validity”
to previous bureau actions.