This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for allegedly violating the Home Mortgage Disclosure Act by consistently failing to report accurate data about mortgage transactions for 2012 through 2014. The enforcement action is the largest HMDA civil penalty imposed by the bureau to date, which stems from Nationstar's market size, the substantial magnitude of its errors, and its history of previous violations, according to the bureau's press release.
In its supervision process, the CFPB found that Nationstar's HMDA compliance systems were flawed and generated mortgage lending data with significant, preventable errors. Nationstar also allegedly failed to maintain detailed HMDA data collection and validation procedures, failed to implement adequate compliance procedures, and produced discrepancies by failing to consistently define data among its various lines of business. Navistar agreed to the issuance of a Consent Order without admitting or denying any wrongdoing.