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.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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