Alleged Mortgage Data Inaccuracies Result in a $200,000 Penalty

  • The Consumer Financial Protection Bureau (“CFPB”) reached a settlement with Washington Federal Bank, N.A. to resolve allegations that it reported inaccurate data about its mortgage transactions in violation of the Home Mortgage Disclosure Act (“HDMA”), Regulation C, and the Dodd–Frank Wall Street Reform and Consumer Protection Act. HDMA data is used to identify discriminatory lending practices and analyze community credit needs.
  • According to the consent order, the CFPB found that Washington Federal Bank failed to report accurate data about its mortgage applications, with some samples having error rates of 40% due to insufficient staffing and training, poor oversight, and an ineffective compliance-management system. The consent order also notes that Washington Federal Bank is the subject of a 2013 consent order with the CFPB that involved similar allegations of inaccurate mortgage data reporting.
  • Under the terms of the consent order, Washington Federal Bank will pay a $200,000 civil money penalty and must develop and implement an adequate HDMA compliance-management system, among other things.