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CFPB Fines Nationstar US$1.75 Million for the Violation of HMDA

Nationstar Mortgage agreed on Wednesday to pay US$1.75 million to the Consumer Financial Protection Bureau for failing to accurately report home mortgage data that is used to identify discrimination.

According to the CFPB, Nationstar’s US$1.75 million fine is the largest HMDA civil penalty ever imposed by the CFPB. The size of the fine is based on Nationstar’s market size, the substantial magnitude of its errors, and its history of previous violations, according to CFPB.

The Home Mortgage Disclosure Act, referred to as HMDA, was originally enacted in 1975 and requires many financial institutions to collect data about each company’s housing-related lending activity.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. According to the CFPB, Nationstar did not fulfill its HMDA reporting obligations.

News Characteristics

Date : Mar 15, 2017
Region : North America
Industry : Banks
Function : Risk Management
Sub-Function : Fraud Management