A Texas community bank and conservative groups are suing the federal government over the appointment of Consumer Financial Protection Bureau director Richard Cordray and the structure of the agency.
In a lawsuit filed at the U.S. District Court on Thursday, the State National Bank of Big Spring, Texas, said Cordray's appointment and the structure of the bureau created under the Dodd-Frank financial regulatory overhaul should be ruled as unconstitutional. It argued that Dodd-Frank "gives an agency of unelected government bureaucrats unrestrained power."
State National Bank, which holds just $275 million in assets, is not subject to the direct supervision of the CFPB, but it charged that the bureau's wide jurisdiction over mortgage lending creates uncertainty over the loans that it can make.
"No other federal 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," said
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