CFPB proposes settlement with Freedom Mortgage in HMDA case
National Mortgage News
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The Consumer Financial Protection Bureau is proposing to settle its suit against Freedom Mortgage, wherein the watchdog accused the lender and servicer of botching the reporting of Home Mortgage Disclosure Act (HMDA) data. If a Florida federal court approves, Freedom may have to dish out $3.95 million for submitting alleged error-riddled mortgage loan data and will have to implement procedures and controls to more accurately report said data going forward, the watchdog wrote in a press release Tuesday. The original complaint, filed last fall, claimed the mortgage loan data submitted by Freedom in 2020 contained widespread errors across multiple data fields, violating HMDA and Regulation C.?
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The top five companies in the ranking have a combined mortgage servicing volume of more than $26 billion at the end of the first quarter of 2024 based on fair value. Many banks recorded an uptick in the value of their mortgage servicing rights between Q4 2023 and Q1 2024, with one seeing an increase of 13.25%. The data in this ranking was sourced from National Mortgage News' MortgageStats site, which pulls from quarterly call reports available from the Federal Financial Institutions Examination Council. Read on to see which bank servicers are in the top 20 and how they fared through the end of March 2024.
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Director of Operations @ AXEN MORTGAGE | Streamlining Processes, Boosting Productivity
5 个月This is what happens when you use foreign offshore labor with minimal oversight ????♀? I hope other lenders learn from this mistake.
Private Money Lender offering ??% short term financing for investment properties!
5 个月3.9 million seems like a slap on the wrist Freedom Mortgage peak revenue was $1.6B in 2023. Freedom Mortgage has 2,174 employees, and the revenue per employee ratio is $735,971.
Fair Lending Expert | Training Lenders, Regulators, Examiners, and Community Housing Groups on fair lending software and compliance. | Customer Success | Marathon Runner (17 x 26.2) ?? (1 x 50K) | Vegan Athlete ??
5 个月This is a significant development in the financial industry. The CFPB’s proposed $3.95 million settlement with Freedom Mortgage underscores the importance of HMDA compliance and investing in training. Be sure you are working with a HMDA vendor that can support your company and help you pinpoint data inaccuracies and outliers. This case highlights the critical need for vigilance and accuracy in regulatory reporting.