CFPB Takes Aggressive Action Against HMDA Violators

October 10, 2013
American Banker  
consumer financial protection bureau news

The Consumer Financial Protection Bureau (CFPB) on Oct. 9 penalized two non-bank mortgage lenders for reporting erroneous data to regulators.

The watchdog fined Mortgage Master and Washington Federal $459,000 for failure to comply with the Home Mortgage Disclosure Act (HMDA), which requires lenders to collect and report loan information -- including applications, originations, and denials by the borrower's race -- to regulators that publicize the aggregate data each year.

Lenders have been reporting the data for decades, but the CFPB -- which took over enforcement after the passage of the Dodd-Frank Act -- issued a strict notice that made it clear it will be scrutinizing lenders for HMDA compliance. It stressed that inaccurate information makes it more difficult for the agency to identify potential fair lending violations.

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