Even if the courts invalidate Richard Cordray’s recess appointment to the Consumer Financial Protection Bureau, legal experts say several recent mortgage regulations approved during his tenure may still be upheld.

It’s unclear, however, whether other rules that apply primarily to nonbanks, such as payday lenders and credit reporting agencies, will survive. Without a permanent director, the CFPB would have no authority to create or enforce new rules, according to attorneys and industry consultants.

“There will be doubt over the things the CFPB can do with respect to nonbanks,” said Alan S. Kaplinsky, Practice Leader of the Consumer Financial Services Group at Ballard Spahr.

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Consumer Financial Services