The Consumer Financial Protection Bureau is putting lenders—both banks and non-banks—on notice for their reporting of mortgage loan data.
The agency has ordered two lenders to pay civil penalties for inaccurate reporting of data under the Home Mortgage Disclosure Act, after HMDA reviews conducted by the Bureau revealed thousands of errors in the lenders’ 2011 data reports.
Walpole, Mass.-based Mortgage Master has been ordered to pay $425,000 in civil penalties and Seattle-based Washington Federal faces $34,000 in penalties as a result of consent orders brought by the CFPB.
Bureau chief Richard Cordray warned lenders in announcing the orders that the agency is sending a “strong signal” to those who operate under HMDA and report data accordingly.
“When financial institutions report inaccurate information, it obstructs the purpose of the Home Mortgage Disclosure Act and makes it more difficult for the CFPB to discover and stop discriminatory lending,” Cordray said. “Today we are sending a strong signal that no mortgage lending institution – whether bank or nonbank – should be able to mislead the public with erroneous data.”
The named lenders have also been charged with correcting and resubmitting the erroneous data under the consent orders.
The agency also has issued a bulletin putting lenders on official notice, and detailing the components of an effective HMDA compliance management system. The agency also details factors it may consider when evaluating whether to take enforcement for violations.
Written by Elizabeth Ecker
