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Read more: CFPB takes action against mortgage lender for illegal activities
The CFPB’s initial review of 159 files in Freedom’s 2020 submission uncovered 51 errors, leading to a resubmission where Freedom corrected errors in 35 different required HMDA data fields. These errors affected over 174,000 data entries, nearly 20% of Freedom’s mortgage loan applications.
Additionally, the CFPB found that Freedom had intentionally misreported HMDA data about applicants’ race and ethnicity in 2019, leading to a $1.75 million penalty and a mandate to improve its compliance management system and avoid future HMDA violations.
The current lawsuit seeks to halt Freedom’s alleged unlawful conduct and impose a civil money penalty, which will be deposited in the CFPB’s victims relief fund.
In a statement, CFPB director Rohit Chopra said, “The CFPB is suing Freedom Mortgage for violating a law enforcement order and for providing false data on its mortgage operations. The CFPB will continue to focus on ending the cycle of misconduct by repeat offenders in the financial industry.”
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