Legal

Bayview mortgage servicers seek to block plaintiff’s filing in data breach lawsuit

Cyberattack near the end of 2021 impacted 2.5 million borrowers

Three Bayview Asset Management-owned mortgage servicers are seeking to halt a plaintiff’s filing in a data breach lawsuit, citing an overabundance of confidential information shared about the incident, National Mortgage News first reported. 

The objection, filed on Feb. 28 in federal court, represents the latest development in an ongoing lawsuit involving a data breach. Community Loan Servicing, Lakeview Loan Servicing and Pingora Loan Servicing are the three servicers involved.

Lakeview Loan Servicing, one of the nation’s largest servicing companies, fell prey to a cyberattack in the final months of 2021 that targeted the personal data of approximately 2.5 million borrowers, including their Social Security numbers. 

Lakeview subsequently became embroiled in a federal lawsuit in Miami, with clients alleging the servicer’s failure to adequately protect their personally identifiable information. The lawsuit encompasses victims of data breaches at Pingora Loan Servicing and Community Loan Servicing, which are also subsidiaries of Florida-based Bayview Asset Management.

The plaintiffs seek to implement a series of cybersecurity measures at the firms while also seeking damages for the late 2021 hack. In January 2024, they amended their complaint, presenting a 225-page filing containing information obtained through confidential discovery.

“The proposed amended complaint is replete with unnecessary and out-of-context quotes from dozens of confidential documents and, thus, violates the protective order,” attorneys for Bayview wrote in a statement, referencing an earlier agreement to keep sensitive information out of public view.

Bayview stands accused of failing to adequately secure and protect electronically stored, personally identifiable information. The case adds to the growing list of mortgage companies grappling with recent cyberattacks, including Mr. Cooper Group, First American, Fidelity National Financial Inc., and Fairway Independent Mortgage Corp.

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