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THE LATEST ORIGINATION Industry Takes Action Against the CFPB Attempting to declare the bureau "unconstitutional," banks and trade groups are going after the organization. T Texas community bank and two conservative groups launch a lawsuit to undo it and the financial reform law that created it two years ago. Big Spring, Texas-based State he Consumer Financial Protection Bureau (CFPB) faces a new legal challenge as a agency or commission operates in such a way that one person can essentially determine who gets a home loan, who can get a credit card, and who can get a loan for college." The suit cites "harm" done to National Bank recently paired with the Competitive Enterprise Institute and 60 Plus Association to sue the embattled consumer bureau in federal court. The suit challenges the work for consumers and respon- sible providers." Rep. Spencer Bachus State National Bank by Dodd- Frank, with claims that uncer- tainty facilitated by the reform law forced the financial institu- tion to stop making mortgage loans for homeowners. C. Boyden Gray, a former White constitutionality of the CFPB and Dodd-Frank Act, as well as President Barack Obama's decision to recess-appoint CFPB Director Richard Cordray in January. Jim Purcell, CEO of State House general counsel, will repre- sent the plaintiffs in their suit. The consumer bureau seemed to dismiss the suit. "This lawsuit appears to dredge National Bank, did not return re- quests for comment to MReport. The Hill quoted Purcell as saying that "[n]o other federal up old arguments that have already been discredited," Jennifer Howard, CFPB spokeswoman, said in an email to MReport. "We're going to keep our focus on the important work Congress created us to do: making markets (R-Alabama) issued a statement in support of structural reform efforts aimed at the consumer bureau. "There is no question the Consumer Financial Protection Bureau—by the design of Dodd- Frank Act supporters—lacks accountability and transpar- ency," he said. "As it is currently structured, the CFPB is one of the most powerful and least accountable agencies in all of Washington." The suit names Cordray, Treasury Secretary Timothy Geithner, and Federal Reserve Chairman Ben Bernanke, among others, including the Federal Stability Oversight Council (FSOC). Beyond claims against the consti- tutionality of the CFPB and Dodd- Frank, the suit charges that the FSOC will disadvantage smaller financial institutions by conferring special status on larger banks that it declares systemically important to the global financial system. "Taken together, these provi- sions provide the FSOC virtually boundless discretion in making its highly consequential designa- tions, a violation of the separa- tion of powers," the suit said. "As it is currently structured, the CFPB is one of the most powerful and least accountable agencies in all of Washington." — Rep. Spencer Bachus (R-Alabama) THE M REPORT | 43 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET