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The CFPB on Wednesday ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for Home Mortgage Disclosure Act violations from 2012 to 2014, during which the company consistently failed to report accurate data about mortgage transactions.

This is the largest HMDA civil penalty imposed by the bureau to date. Factors included Nationstar's market size, the magnitude of its errors and previous violations. Nationstar had been on notice since 2011 due to HMDA compliance problems.

In addition to the penalty, Nationstar must also improve its compliance management and prevent future violations.

Nationstar, a nationwide nonbank mortgage lender headquartered in Coppell, Texas, has nearly 3 million customers. According to 2014 data, Nationstar was the ninth-largest HMDA reporter by total mortgage originations.

In its supervision process, the CFPB found that Nationstar's HMDA compliance systems were flawed and generated mortgage lending data with significant, yet preventable, errors. Nationstar also failed to maintain detailed HMDA data collection and validation procedures, and it failed to implement adequate compliance procedures.

The full text of the CFPB's order against Nationstar can be found here.

Most of the CFPB's new HMDA final rule requirements will become effective Jan. 1, 2018. They establish transactional thresholds for coverage and expand the number of HMDA data points collected from credit unions. NAFCU has a host of HMDA compliance resources available to association members, including charts and guides, articles, webcasts and blog posts.