The Consumer Financial Protection Bureau (CFPB) announced it has filed a proposed order that would enact a $3.95 million fine against Freedom Mortgage Corporation for submitting “error-riddled mortgage loan data” to federal regulators.
The proposed order would also require Freedom Mortgage to regularly audit, test, and correct the company’s Home Mortgage Disclosure Act (HMDA) data.
Last October, the CFPB sued the company for violating both HMDA and a 2019 CFPB order when it submitted incorrect mortgage data in 2020 – during that year, Freedom reported HMDA data on over 700,000 mortgage loan applications and originated nearly 400,000 HMDA-reportable loans worth almost $100 billion.
“Freedom Mortgage is a repeat offender that has ignored requirements to submit accurate data that help federal regulators maintain a fair home lending market,” said CFPB Director Rohit Chopra. “The CFPB is making sure that Freedom Mortgage pays for their actions as well as institutes guardrails to prevent future violations.”
Freedom Mortgage did not publicly comment on the CFPB’s announcement.
;
I can’t believe the size of the fine for HMDA violations. No borrower’s were hurt and there is no guarantee that more mistakes might be made, so why such a large amount of money?
I don’t understand the CFPB.