Financial Institutions Blog

CFPB Issues Penalty for HMDA Violations

The Consumer Financial Protection Bureau (CFPB) issued a $1.75 million civil money penalty against Nationstar Mortgage LLC (Nationstar) for Home Mortgage Disclosure Act (HMDA) violations. Nationstar failed to report accurate HMDA data in 2012, 2013 and 2014.  The $1.75 million dollar penalty is the largest HMDA penalty ever issued by the CFPB.  Nationstar is one of the largest mortgage lenders in the country with almost 3 million customers.  In addition to the civil money penalty, Nationstar must go back and fix the HMDA errors and also develop and implement an effective HMDA compliance management system.

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John Zasada is a principal with CLA and leads the firm’s financial institution regulatory compliance practice. He assists financial institutions nationwide in establishing regulatory compliance programs, conducting compliance testing, training staff on regulations, and performing website compliance assessments. In addition, John is a frequent speaker at industry conferences and state associations. Prior to joining CLA, he served as managing director at a top-10 accounting firm and as the compliance officer of a large financial institution, where he developed and implemented its first regulatory compliance program.

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