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UPDATE 1-Nationstar Mortgage to pay $1.75 mln over loan reporting flaws -CFPB
March 15, 2017 / 6:35 PM / 4 months ago

UPDATE 1-Nationstar Mortgage to pay $1.75 mln over loan reporting flaws -CFPB

2 Min Read

(Adds background, comments from Nationstar and CFPB Director Richard Cordray)

By Sarah N. Lynch and David Alexander

WASHINGTON, March 15 (Reuters) - The U.S. Consumer Financial Protection Bureau said on Wednesday that it had ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for failing to report accurate mortgage transaction data from 2012 through 2014.

The agency said the penalty for Nationstar, a unit of Nationstar Mortgage Holdings Inc, was the largest to date over violations of the Home Mortgage Disclosure Act. The 1975 law requires lenders to collect and report mortgage data to federal agencies and the public.

The information is used for a variety of purposes, including helping regulators monitor and identify potentially discriminatory lending patterns.

The CFPB said the size of the fine was derived from factors including the lender's market size, history of repeat violations and the "substantial magnitude of its errors."

“Financial institutions that violate the law repeatedly and substantially are not making serious enough efforts to report accurate information,” CFPB Director Richard Cordray said in a statement.

Nationstar said in a statement that its settlement with the government "does not reflect any wrong-doing impacting customers or fair lending; but rather, technical data issues that we have worked tirelessly to resolve through significant investments."

The company said it regretted the errors but added that the data problems were "not reflective of our customer and compliance-driven business practices." (Reporting by Sarah N. Lynch and David Alexander; Editing by Lisa Von Ahn)

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