The MHI says the U. S. Court of Appeals for the District of Columbia district ruled the Obama administration did not have the authority to fill three recess appointments to the National Labor Relations Board (NLRB) Jan. 4, 2012. That was the same day President Obama made a recess appointment for Richard Cordray to be director of the Consumer Financial Protection Bureau (CFPB). The State National Bank of Big Spring (Tex.) has already filed suit challenging the constitutionality of Cordray’s appointment, which the NLRB ruling may strengthen. Since his recess appointment term expires at the end of 2013, President Obama nominated Cordray for confirmation again. Although he has been serving as director, if the legal challenge holds, his fate will be in the hands of Senate Republicans who have opposed his nomination because they want to change the CFPB’s structure. Meanwhile, Cordray gets high marks from David Stevens, president and CEO of the Mortgage Bankers Association. “He and his team are accessible, they’re open, they listen to all stakeholders clearly,” says Stevens. Tom Feltner, director of financial services for the Consumer Federation of America says, “The bureau has proven to be an effective regulator.” Republicans are not convinced. House Financial Services Committee Chairman Jeb Snarling (R-TX) says the NLRB ruling means Cordray’s appointment was unconstitutional, unlawful, or both. As MHProNews has learned, a separate lawsuit is challenging the Dodd-Frank financial reform law, including Cordray’s appointment.
