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DOJ Will Be Allowed To Join Ocwen’s Challenge To Constitutionality Of CFPB - HousingWire

Ocwen Financial could soon get a big boost in its fight against the Consumer Financial Protection Bureau from a once-unlikely source – the Department of Justice. In defending itself against the CFPB’s claims that Ocwen illegally foreclosed on borrowers, ignored customer complaints, mishandled borrowers’ money, and failed at the most basic of mortgage servicing actions.  Ocwen asked a federal judge to declare the CFPB unconstitutional and toss out the CFPB’s lawsuit against the company. The issue raised by Ocwen is the whether the structure of the CFPB is unconstitutional, which is also currently in question in a legal battle between the CFPB and PHH. Both PHH and Ocwen have argued that the CFPB is unconstitutionally structured because the bureau’s director has too much power and that the bureau operates without supervision or oversight.  It should be noted that the judge’s ruling simply allows the DOJ to contribute to the case if it chooses to. There’s no guarantee that the DOJ will elect to join the case, but given the agency’s previous declaration that the CFPB is unconstitutionally structured, it is likely that the DOJ will contribute to the Ocwen case and make a similar declaration about the CFPB.

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