Supreme Court denies CFPB mortgage case certiorari

JD Supra Finance & Banking

Filed March 30th, 2026

Detected March 30th, 2026

Summary

The U.S. Supreme Court denied certiorari in a CFPB enforcement action involving alleged deceptive mortgage payment practices, leaving in place a 9th Circuit decision affirming liability on remand. The underlying case, filed by the CFPB in 2015, involved claims that a mortgage product overstated consumer savings and falsely implied lender affiliation. The denial concludes Supreme Court review while the $134M restitution award remains in effect.

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What changed

The Supreme Court declined to review a long-running CFPB enforcement action, denying certiorari in March 2026. The case involved allegations of deceptive and abusive practices related to a mortgage payment product, including overstating consumer savings and creating false impressions of lender affiliation. The November 2025 9th Circuit decision had affirmed the district court's finding of liability on remand, rejecting challenges to CFPB director authority, the statute of limitations period, and the Telemarketing and Consumer Fraud and Abuse Prevention Act application.

Financial institutions offering mortgage-related products should note that the Supreme Court's denial leaves the $134 million restitution award intact. This case demonstrates the CFPB's continued enforcement authority following constitutional challenges and underscores the importance of clear, accurate disclosures in mortgage servicing and marketing. Companies should review their consumer-facing materials for compliance with deceptive practices standards.

What to do next

Review mortgage servicing and marketing materials for deceptive representations
Ensure consumer communications clearly disclose any lender affiliations
Audit savings or cost claims for accuracy and substantiation

Penalties

$134 million restitution award upheld; CFPB enforcement authority affirmed

Source document (simplified)

March 30, 2026

U.S. Supreme Court declines review in CFPB enforcement action

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On March 23, the U.S. Supreme Court denied certiorari in a long-running CFPB enforcement action over allegations that a mortgage payment product involved deceptive and abusive representations, including overstating consumer savings and creating the false impression of affiliation with consumers’ lenders. The case, filed by the CFPB in 2015, has been through multiple rounds of litigation — most recently culminating in a November 2025 9th Circuit decision (covered by InfoBytes here) affirming the district court’s finding of liability on remand and rejecting challenges to: (i) the CFPB director’s authority; (ii) the applicable statute of limitations period; and (iii) the court’s application of the Telemarketing and Consumer Fraud and Abuse Prevention Act. The Supreme Court’s denial leaves the 9th Circuit’s decision in place.

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