CFPB Takes Action against Nationstar

On Wednesday, March 15, 2017, the CFPB ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for violating HMDA by consistently failing to report accurate data about mortgage transactions in 2012 through 2014. Nationstar, a nationwide nonbank mortgage lender headquartered in Coppell, TX, is a wholly-owned subsidiary of Nationstar Mortgage Holdings Inc. With nearly three million customers, Nationstar Mortgage Holdings is a major participant in the mortgage servicing and origination markets.

 

This action is the largest HMDA civil penalty imposed by the Bureau to date, which stems from Nationstar’s market size, the magnitude of its errors, and its history of previous violations. The CFPB reported Nationstar had been notified of these HMDA compliance issues since 2011. In addition to paying the civil penalty, Nationstar must take the necessary steps to improve its compliance management and prevent future violations.

 

“Financial institutions that violate the law repeatedly and substantially are not making serious enough efforts to report accurate information,” said CFPB Director Richard Cordray in a statement. “Today we are sending a strong reminder that HMDA serves important purposes for many stakeholders in the mortgage market, and those required to report this information must make more careful efforts to follow the law.”