The CFPB recently announced that Nationstar would have to pay a $1.75 million penalty – the largest ever for HMDA violations – to settle allegations that Nationstar failed to follow disclosure rules and committed “significant, preventable errors” in HMDA compliance. The CFPB also pointed out that the company had a “history of previous violations.”
Nationstar, however, maintained that the violations were technical mistakes rather than intentional malfeasance.
“The settlement 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 in a statement.
Nationstar said it has made significant changes over the past two years through “substantial investments in new staff, training and technology” regarding HDMA-related processes.
“Nationstar understands how accurate HMDA data is critical to fair lending, and we regret the mistakes that led to the reporting errors,” the company said. “These data issues are not reflective of our customer and compliance-driven business practices, and we remain committed to treating every applicant fairly and responsibly.”
Nationstar hit with CFPB penalty for alleged compliance failures
Servicing giant will have to face mortgage insurance lawsuit
Nationstar Mortgage has denied wrongdoing in its settlement over alleged violations of the Home Mortgage Disclosure Act.