(Adds background, comments from Nationstar and CFPB Director
By Sarah N. Lynch and David Alexander
WASHINGTON, March 15 The U.S. Consumer Financial
Protection Bureau said on Wednesday that it had ordered
Nationstar Mortgage LLC to pay a $1.75 million civil penalty for
failing to report accurate mortgage transaction data from 2012
The agency said the penalty for Nationstar, a unit of
Nationstar Mortgage Holdings Inc, was the largest to
date over violations of the Home Mortgage Disclosure Act. The
1975 law requires lenders to collect and report mortgage data to
federal agencies and the public.
The information is used for a variety of purposes, including
helping regulators monitor and identify potentially
discriminatory lending patterns.
The CFPB said the size of the fine was derived from factors
including the lender's market size, history of repeat violations
and the "substantial magnitude of its errors."
“Financial institutions that violate the law repeatedly and
substantially are not making serious enough efforts to report
accurate information,” CFPB Director Richard Cordray said in a
Nationstar said in a statement that its settlement with the
government "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 it regretted the errors but added that the
data problems were "not reflective of our customer and
compliance-driven business practices."
(Reporting by Sarah N. Lynch and David Alexander; Editing by
Lisa Von Ahn)