Funding for Consumer Financial Protection Bureau has Consequences for Housing

Legal
Published
Contact: Thomas Ward
[email protected]
VP, Legal Advocacy
(202) 266-8230

In a case that could have significant repercussions for the housing industry, the U.S. Supreme Court on Oct. 3 heard oral arguments in Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association of America.

The case centers on whether the way the CFPB receives its funding is a violation of the Appropriations Clause of the U.S. Constitution. Congress allows the CFPB to be funded through the Federal Reserve, rather than the annual appropriations process that determines the federal budget.

NAHB joined the Mortgage Bankers Association and the National Association of Realtors to file an amicus brief warning the Supreme Court that the “housing market could descend into chaos” if the high court unwittingly rejected numerous mortgage rules that NAHB’s members rely on to ensure people can purchase homes.

Our coalition’s brief focused on the remedy if the Supreme Court found against CFPB and did not make any arguments concerning the constitutionality of the funding scheme.

The attorneys for both parties received strong questioning from the justices concerning CFPB’s funding and how it could craft a remedy if it found the CFPB’s funding is unconstitutional. Solicitor General Elizabeth Prelogar specifically mentioned NAHB’s brief when she suggested that the Supreme Court could address only the funding — and not the rules — that the CFPB has developed.

Moreover, Justice Sonia Sotomayor stated her concern about the market disruption that would occur if the Supreme Court jettisoned the rules that the mortgage market relies on. The attorney for the Community Financial Services Association (CFSA) suggested that the Supreme Court could stay its decision and send the case to Congress so it could develop a different way to fund the CFPB.

In the end, both liberal and conservative justices seemed to have trouble understanding the CFSA’s argument that the CFPB funding scheme violated the Appropriations Clause. Justice Clarence Thomas specifically commented that it was not enough to argue that Congress has never funded an agency in this manner; there must be a reason why that violates the Constitution.

NAHB expects a decision by early 2024.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Workforce Development | Student Chapters

Mar 02, 2026

NAHB Student Competition Success Shows Residential Construction Future is Bright

For two days at the International Builders' Show, aspiring land developers, designers and project managers from NAHB Student Chapters across the country presented thorough building proposals and fielded tough questions from an audience of construction company executives.

Material Costs

Feb 27, 2026

Senate Bill Would Exclude Building Materials from Tariffs

NAHB worked with Sens. Jacky Rosen (D-Nev.) and Chris Coons (D-Del.) to introduce legislation that would address the housing affordability crisis by creating an exemption process for building materials from tariffs.

View all

Latest Economic News

Economics

Feb 27, 2026

Gains for Student Housing Construction in the Last Quarter of 2025

Private fixed investment for student dormitories was up 1.5% in the last quarter of 2025, reaching a seasonally adjusted annual rate (SAAR) of $3.9 billion. This gain followed three consecutive quarterly declines before rebounding in the final two quarters of the year.

Economics

Feb 27, 2026

Price Growth for Building Materials Slows to Start the Year

Residential building material prices rose at a slower rate in January, according to the latest Producer Price Index release from the Bureau of Labor Statistics. This was the first decline in the rate of price growth since April of last year. Metal products continue to experience price increases, while specific wood products are showing declines in prices.

Economics

Feb 26, 2026

Home Improvement Loan Applications Moderate as Borrower Profile Gradually Ages

Home improvement activity has remained elevated in the post-pandemic period, but both the volume of loan applications and the age profile of borrowers have shifted in notable ways. Data from the Home Mortgage Disclosure Act (HMDA), analyzed by NAHB, show that total home improvement loan applications have eased from their recent post-pandemic peak, and the distribution of borrowers across age groups has gradually tilted older.