Analysis of Cordray's Questionable Appointment

It is now becoming apparent that there will be questions raised regarding the appointment of Richard Cordray to the position as Director of the Consumer Financial Protection Bureau (CFPB).  This appointment was made on January 4, 2012.  Without getting into all of the intricate details, the bottom line is that the appointment may (my opinion) be deemed unconstitutional.  If so, the signing on Jan 12, 2013 of the "QM" rule might be ruled invalid.  Since this ruling significantly affects the mortgage industry, and therefore our industry, it might be valuable for all of us to monitor the findings over the next few weeks.  In summary, in my opinion, while I believe that a court could find that the appointment of Mr. Cordray is unconstitutional, the court would quite likely preserve existing regulations established by the CFPB during Mr. Cordray's possibly-contested position as Director or the court would have discretion to formulate regulations that would allow the Treasury time to re-promulgate a QM rule. This would be the best transition without compromising issues for the many mortgage companies.