CFPB Takes Action Against Nationstar Mortgage for Flawed Mortgage Loan Reporting
- Category: Hall of Shame
Bureau's $1.75 Million Civil Penalty for Persistent and Substantial Reporting Errors Is the CFPB's Largest Penalty to Date for HMDA Violations
The Consumer Financial Protection Bureau (CFPB) today ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for violating the Home Mortgage Disclosure Act (HMDA) by consistently failing to report accurate data about mortgage transactions for 2012 through 2014.
"Financial institutions that violate the law repeatedly and substantially are not making serious enough efforts to report accurate information," said CFPB Director Richard Cordray. "Today we are sending a strong reminder that HMDA serves important purposes for many stakeholders in the mortgage market, and those required to report this information must make more careful efforts to follow the law."
The CFPB's Order requires Nationstar to:
- Pay a $1.75 million penalty
- Develop and implement an effective compliance management system
- Fix HMDA reporting inaccuracies