PHH Corp. has asked a federal appeals court to eliminate the Consumer Financial Protection Bureau in a case that challenges the agency's constitutionality.

The CFPB appealed the D.C. Circuit Court of Appeals' October ruling that declared the agency's leadership structure unconstitutional and vacated CFPB Director Richard Cordray's $103 million increase to a $6 million fine levied against PHH two years ago.

In its opening brief filed Friday, the Mount Laurel, N.J., mortgage company asked the court to rule against the CFPB. But it also took things to another level by questioning the legitimacy of the CFPB as a whole, noting the power the sole director structure gives to Cordray, who serves a five-year term that cannot be cut short if the president of the United States wants a replacement and that can be extended indefinitely if the Senate does not confirm a replacement.

Ballard Spahr lawyer Barbara Mishkin offers some more analysis of PHH's brief and other aspects of the case in her blog.

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