The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Freedom Mortgage Corp. that alleged its mortgage loan data that was “riddled with errors” and put the Boca Raton, Florida-based company in violation of both the Home Mortgage Disclosure Act (HMDA) and a 2019 consent order related to HMDA data errors.
In its lawsuit, the CFPB claimed it found 51 errors in an initial review of 159 files in Freedom’s 2020 HMDA data submission. The company was required to resubmit its data and the CFPB said Freedom corrected errors in 35 different required HMDA data fields, which the agency stated encompassed errors in over 174,000 data entries – nearly 20% of Freedom’s mortgage loan applications.
The CFPB also stated Freedom violated a 2019 law enforcement order to correct its data practices but continued to provide with error-ridden data.
“The CFPB is suing Freedom Mortgage for violating a law enforcement order and for providing false data on its mortgage operations,” said CFPB Director Rohit Chopra. “The CFPB will continue to focus on ending the cycle of misconduct by repeat offenders in the financial industry.”