Newsline) — Nationstar Mortgage LLC has been ordered by the Consumer Financial Protection Bureau (CFPB) to pay a record $1.75 million for allegedly failing to report mortgage transaction data.
to allegations, the mortgage lender failed to report accurate data about mortgage
transactions between 2012 and 2014. The Home Mortgage Disclosure Act (HMDA) mandates that mortgage lenders
collect and report data about their mortgage lending to federal agencies. The
CFPB claimed that Nationstar’s HMDA compliance systems were flawed.
institutions that violate the law repeatedly and substantially are not making
serious enough efforts to report accurate information," CFPB Director
Richard Cordray said on March 15. "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 allegations, Nationstar must pay the $1.75 million penalty to the CFPB’s
Civil Penalty Fund, develop and implement a compliance management system that
is more effective to prevent future violations and fix HMDA reporting
This is the
largest HMDA civil penalty the CFPB has imposed to date. In its press release,
the CFPB noted that Nationstar had been on notice of HMDA compliance problems