CFPB fines bank, nonbank for HMDA violations
Oct. 10, 2013 – CFPB has fined Mortgage Master Inc. and Washington Federal for violations of the Home Mortgage Disclosure Act, ordering them to pay $425,000 and $34,000 respectively.
“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,” said bureau Director Richard Cordray.
The CFPB’s consent order for Mortgage Master – headquartered in Walpole, Mass. – showed that there were “significant data errors” in the more than 21,000 mortgage loan applications reported during 2011. Massachusetts’ Division of Banks also found fault in the lender’s filings. In addition to the civil penalty, Mortgage Master is being required to correct and resubmit the data for that year and to create an HMDA compliance management system for the future.
The bureau said Washington Federal – headquartered in Seattle, Wash. – also had data errors in the more than 5,000 mortgage loan applications it reported in 2011.
“Inaccurate HMDA data impedes the Bureau’s efforts to detect violations of the Equal Credit Opportunity Act and to stop discrimination in home mortgage lending,” the bureau said.
The CFPB also issued a bulletin about the importance of accurate HMDA data, how to create an effective compliance management system, and what the CFPB considers when looking into a public enforcement action against a lender.