Bank to Pay CFPB $200K for Repeat HMDA Violations

The CFPB recently entered into a consent order with a national bank for HMDA violations with respect to reporting of data from 2016 and 2017, requiring the bank to pay a $200,000 civil money penalty.  This is the second HMDA consent order that this bank has entered into with the CFPB.

The CFPB found that the bank’s compilation of information for each applicant or borrower who applied for home-purchase loans, home-improvement loans, and re-financing loans in 2016 and 2017 contained significant errors that exceeded applicable thresholds.  An internal audit of the bank’s 2016 reporting identified a 40% error rate.  The CFPB’s review of the bank’s initial 2017 reporting identified a 32% sample error rate, and its review of the bank’s resubmission identified a 16% sample error rate.

Under the consent order, the bank will submit a compliance plan based on a review of its compliance management system by independent consultants.

The bank had previously entered into a 2013 consent order with the CFPB for violations of HMDA and Regulation C, in connection with which the bank had been ordered to pay a $34,000 penalty.

The bank neither admits nor denies the CFPB’s findings.