CFPB Enters Consent Order with Mortgage Lender Over Alleged HMDA Violations

On March 15, 2017, the Consumer Financial Protection Bureau (CFPB) entered into a consent order with national nonbank mortgage lender that requires the lender to pay a $1.75 million civil monetary penalty to resolve alleged violations of the Home Mortgage Disclosure Act (HMDA).  The CFPB alleged that the mortgage lender violated HMDA, 12 U.S.C. § 2803, and its implementing regulation, Regulation C, 12 C.F.R. § 1003.4, by failing to collect and report accurate data on certain HMDA-covered loans (purchase loans, home improvement loans, and refinance loans) between 2012 and 2014.  During that time period, the mortgage lender originated more than 190,000 such loans, totaling approximately $38 billion in origination value.

During an examination of the mortgage lender, the CFPB purportedly found that the mortgage lender’s compliance mechanisms were deficient and there were errors in the HMDA Loan/Application Register.

As a result of the consent order issued this week, the mortgage lender must now submit to the CFPB a compliance plan to prevent HMDA violations, and pay a $1.75 million civil penalty.