On 7/7/2020, the CFPB issued a ratification of a number of previous actions taken by the Bureau, including the large majority of existing regulations. This act of making prior actions officially valid provides financial institutions with clarity that the CFPB’s rules and regulations are still valid in light of a recent court ruling (Seila Law) that the removal provision of the CFPB Director violates law and that the Director must be removable by the President at will. The Seila Law ruling also held that the agency may continue to operate, and this ratification provides clarification to the financial industry that official actions taken by the CFPB from January 4, 2012 to June 30, 2020 are still valid.
The CFPB release can be found here.
