WASHINGTON Oct 11 A U.S. appeals court on
Tuesday ruled that the U.S. Consumer Financial Protection Bureau
is unconstitutional because too much power is vested in the
regulator's sole director, but that it can continue operating
with the director removable by the president.
The U.S. Court of Appeals for the District of Columbia
Circuit ruled in favor of lender PHH Corp in its challenge to
the financial watchdog created by the 2010 Dodd-Frank financial
reform act, and threw out the $109 million penalty imposed on
PHH objected after the agency in January 2014 accused the
lender of referring customers to mortgage insurers who in turn
bought reinsurance from a PHH unit. The bureau cast the
reinsurance payments as improper kickbacks and imposed a $109
million penalty against PHH in June.
(Reporting by Lisa Lambert; Editing by Chizu Nomiyama)