twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.

www.mortgagebranchmanagerjobs.com
CFPB Hands Out $459k in Penalties for HMDA Violations

Orders issued against 2 lenders over data errors

Oct. 9, 2013

By Mortgage Daily staff

The Consumer Financial Protection Bureau issued a five-figure civil money penalty to a Washington Financial Institution, while a mortgage lender out of Massachusetts was hit with a six-figure CFPB penalty in addition to a state fine. Both firms are accused of misreporting loan data.

A CFPB consent order was issued against Washington Federal, according to an announcement Wednesday. The order settles alleged violations of the Home Mortgage Disclosure Act.

The bureau claims that an examination of the Seattle-based financial institution uncovered "significant errors" in the 5,785 loan applications it reported for 2011. The errors resulted from inadequate compliance systems.

The consent order includes a $34,000 civil money penalty and requires Washington Federal to correct and resubmit its 2011 HMDA data and develop and implement an effective HMDA compliance management system to prevent future violations.

Another CFPB consent order was issued against Mortgage Master, which reportedly had significant data errors in its 21,015 applications reported for 2011.

The order against Mortgage Master requires that it pay a $425,000 civil penalty, correct and resubmit its 2011 HMDA data and develop and implement an effective HMDA compliance management system to prevent future violations.

The regulator said that the Mortgage Master investigation involved a close collaboration with the Commonwealth of Massachusetts Division of Banks, which additionally issued an order against the Walpole, Mass.-based firm that included a $50,000 fine.

Mortgage Master President Paul Anastos issued a statement indicating that the CFPB's more than one-year audit found administrative reporting errors and confirmed that no borrowers were harmed. He noted that the company is strongly committed to "comply flawlessly with all reporting requirements" as regulators apply greater scrutiny in all areas of regulatory enforcement.

"We have addressed the system issues that caused the reporting errors and we are in the process of verifying the accuracy of all data through the end of second quarter of 2013," Anastos stated. "We will continue to evaluate all business operations to ensure they are efficient, effective, and compliant."

For its part, the CFPB said it is putting the mortgage industry on notice about the importance of accurate HMDA data and effective HMDA compliance management systems.

"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," CFPB Director Richard Cordray said in a statement. "Today we are sending a strong signal that no mortgage lending institution -- whether bank or non-bank -- should be able to mislead the public with erroneous data."

Both mortgage lenders have taken steps to improve HMDA compliance management and HMDA data accuracy since they were uncovered by the CFPB, according to the bureau.

The CFPB noted that it has conducted HMDA reviews at dozens of bank and non-bank mortgage lenders and found that many have adequate compliance systems.

HMDA bulletin issued by the CFPB discusses components of an effective HMDA compliance management system, details factors the CFPB may consider when evaluating whether to pursue a public enforcement action and lists the error thresholds that CFPB examination teams will use to determine when institutions should correct and resubmit their HMDA data.

A new HMDA resubmission schedule and guidelines apply to HMDA reviews starting on Jan. 18, 2014.

"CFPB examination teams will use different guidelines when they conduct HMDA reviews at banks and non-banks that have 100,000 or more mortgage loans to report," today's announcement stated. "This is because a low error rate at a large institution can reflect a larger number of HMDA data errors than a comparable error at a smaller institution."

HMDA bulletin | HMDA resubmission schedule

next story

back to current headlines


Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.


Bank news


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders