On June 18, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it has filed a proposed order that would require a Florida-based nonbank mortgage loan originator to pay a $3.95 million penalty for allegedly submitting incorrect loan data to federal regulators.
In an October 2023 complaint, the CFPB accused the mortgage originator of submitting incorrect mortgage data in violation of the Home Mortgage Disclosure Act (HMDA). According to the complaint, the 2020 mortgage data contained multiple errors that were caused by "widespread systemic issues and compliance management system failures." The CFPB also alleged the mortgage originator's actions violated a 2019 CFPB consent order which imposed a monetary penalty of $1.75 million for similar alleged conduct.
The lofty penalty has been imposed due to the CFPB's increased crackdown on entities it views as "repeat offenders." In addition to the nearly $4 million fine, the proposed order also requires the mortgage originator to regularly audit, test, and correct it's HDMA's data.
The post CFPB Settles with Nonbank Mortgage Originator for $4 Million appeared first on Consumer Finance Insights (CFI).
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