If confirmed by the Senate, Supreme Court Justice nominee Brett Kavanaugh would replace Justice Anthony Kennedy, a moderate justice who recently announced his retirement. Kavanaugh has ruled that the Consumer Financial Protection Bureau, in its current form, is unconstitutional.
In 2016, PHH, a mortgage lender, challenged CFPB Director Richard Cordray’s $103 million increase to a $6 million fine initially levied against PHH for allegedly illegally referring consumers to mortgage insurers in exchange for kickbacks.
To combat this fine, PHH brought a case against the CFPB, challenging Cordray’s authority to levy the additional fine and the constitutionality of the CFPB, and after much deliberation, the court agreed with PHH on all counts.
This decision was made by three justices of the U.S. Court of Appeals for the District of Columbia, with Kavanaugh writing the court’s decision.