The Consumer Financial Protection Bureau penalized two nonbank mortgage lenders, Mortgage Master and Washington Federal, for failure to properly comply with the Home Mortgage Disclosure Act of 1975.
After the passage of the Dodd-Frank Act in 2010, the CFPB took over authority for HMDA data. Lenders are required by law to collect and report mortgage information to financial regulators that publicize the aggregate data annually.
The CFPB assessed $459,000 in penalties against the two nonbank mortgage lenders.
"When financial institutions report inaccurate information, it obstructs the purpose of the Home Mortgage Disclosure Act and makes it more difficult for the CFPB to discover and stop discriminatory lending," said CFPB Director Richard Cordray in a press release. "Today we are sending a strong signal that no mortgage lending institution - whether bank or nonbank - should be able to mislead the public with erroneous data."
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