Funding for Consumer Financial Protection Bureau has Consequences for Housing
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.
Latest from NAHBNow
Jun 11, 2026
Supreme Court Sides Against DOE Appliance OverreachOn June 8, the U.S. Supreme Court struck down a D.C. Circuit Court ruling that would have allowed the Department of Energy (DOE) to effectively eliminate certain gas appliances from the market.
Jun 10, 2026
NAHB Urges Long-Term NFIP Reauthorization, Warns Against PrivatizationIn a joint letter to Defense Secretary Pete Hegseth and Homeland Security Secretary Markwayne Mullin, NAHB and the National Association of Realtors urged the secretaries, as co-chairs of the FEMA Review Council, to act on four key items related to the National Flood Insurance Program (NFIP).
Latest Economic News
Jun 11, 2026
Residential Building Material Prices Rise at Highest Rate In Over Three YearsWholesale prices of goods used in residential construction rose in May as energy prices continued to climb.
Jun 10, 2026
Inflation Surpassed 4% in MayInflation accelerated to a new three-year high in May, driven by continued increases in energy costs from the Iran war. Energy costs drove more than 60% of the monthly increase, with national gasoline prices jumping more than a dollar since the war began.
Jun 10, 2026
Home Building Regulatory Cost Burdens Increased 40% from 2021 to 2026A new NAHB study shows that, on average, regulations imposed by government at all levels account for $131,734, or 26.4%, of the final price of a new single-family home built for sale. Of this amount, $46,795 is due to a higher price for the finished lot, attributable to regulations imposed during the lot’s development.