A federal judge on June 2 blocked Ocwen Financial Corp.’s bid to test the constitutionality of the Consumer Financial Protection Bureau in the early stage of a closely watched enforcement case (Consumer Financial Protection Bureau v. Ocwen Fin. Corp. , S.D. Fla., 17-cv-80495, 6/2/17), Bloomberg BNA reported yesterday. The ruling by Judge Kenneth Marra of the U.S. District Court for the Southern District of Florida allows the CFPB to proceed unimpeded with its April lawsuit alleging that Ocwen violated consumer protection laws in servicing loans of distressed borrowers. Ocwen sought an early case conference on the constitutional question, saying that it should be settled before allowing the CFPB to go further. Judge Marra disagreed, saying that would depart from settled procedural rules and might delay the case. He said Ocwen may still make its constitutional attack on a motion to dismiss. Marra also declined Ocwen’s request to seek U.S. Attorney General Jeff Sessions’ views on the CFPB’s constitutionality. In a separate order June 2, Judge Marra also said that it’s “premature” to invite the Attorney General’s views at this point.
