Lending

Nationstar facing CFPB fine over HMDA violations

Discloses that company is negotiating with CFPB

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Nationstar Mortgage is facing a fine from the Consumer Financial Protection Bureau over the nonbank’s alleged failure to comply with the reporting requirements of the Home Mortgage Disclosure Act, the company revealed Thursday.

Nationstar disclosed the potential fine in its 10-K filing with the Securities and Exchange Commission.

In the filing, Nationstar said it is “currently in negotiations with the CFPB regarding the payment of civil monetary penalties for the alleged failure to comply with the reporting requirements of the Home Mortgage Disclosure Act.”

The Home Mortgage Disclosure Act, referred to as HMDA, was originally enacted in 1975 and requires many financial institutions to collect data about each company’s housing-related lending activity.

As part of HMDA, companies are required to disclose information regarding home purchase loans, home improvement loans and refinance loans that they originate or purchase, or for which they receive applications.

HMDA also requires financial institutions to report to the appropriate federal agencies and make the data available to the public, which regulators can use for various oversight reasons.

HMDA information is often used to determine whether a lender is in compliance with other mortgage-related laws such as the Equal Credit Opportunity Act, the Fair Housing Act and the Community Reinvestment Act.

As for Nationstar, the company’s filing does not provide any additional details as to the amount of the potential fine or the nature of its alleged compliance failures, but the filing states that “management does not believe that resolution of this matter would have a material effect on the company’s results of operations or financial position.”

When contacted by HousingWire, a spokesperson for Nationstar said that the company will not be commenting beyond what’s in the SEC filing.

A spokesperson for the CFPB also issued a “no comment” on the Nationstar situation.

To see Nationstar's full 10-K, click here.

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