CFPB Can't Regulate Mortgage Relief Firms, 7th Circ. Told

Law360 (January 12, 2021, 7:27 PM EST) -- The principals of two now-defunct mortgage relief law firms accused of scamming struggling homeowners urged the Seventh Circuit on Tuesday to throw out a roughly $59 million judgment for the Consumer Financial Protection Bureau, saying the agency doesn't have the authority to regulate the practice of law.

The CFPB said in its 2014 lawsuit that the The Mortgage Law Group LLP, associated company Consumer First Legal Group LLC and their founding partners swindled clients into paying illegal upfront fees for mortgage assistance legal help that wasn't delivered as promised. But not only is the case an overreach of the agency's authority, it hasn't proved...

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