The Consumer Financial Protection Bureau took action against Nationstar Mortgage for flawed reporting. Nationstar has been ordered to pay 1.75 million civil penalty for consistently failing to report accurate data about mortgage transactions from 2012-2014. In addition to paying the civil penalty they must take the necessary steps to improve compliance and prevent future violations.
Mortgage lenders are required to collect and report data about their mortgage lending to appropriate federal agencies, community organization. State and local agencies use this information to service housing needs in their communities. It helps direct the public sector investment to attract private investment to the areas where it is needed.
The CFPB found that Nationstar’s reporting was flawed and generated mortgage lending data with significant errors.