CFPB Fines Freedom For Intentionally Reporting Inaccurate HMDA Data
Freedom Mortgage has been fined for intentionally reporting inaccurate Home Mortgage Disclosure Act data which includes, race, ethnicity and sex information.
The Consumer Financial Protection Bureau's investigation found that this data was recorded intentionally between 2014 and 2017, according to HousingWire.
"The bureau stated that 'certain loan officers' at Freedom were told by their managers or other loan officers to select 'non-Hispanic white' for the ethnicity of loan applicants who elected not to provide information about their race or ethnicity, regardless of whether they were actually white or not," according to the report.
"HMDA regulations require covered lenders to collect, record, and report each loan applicant’s and co-applicant’s race, ethnicity, and sex."
The report stated that managers told select LOs at the company to select "non-Hispanic white" on applications from loan applicants who chose not to disclose information about their race.
"At issue was Freedom’s proprietary electronic system-of-record, which the CFPB identifies as 'Lakewood,'" according to the report.
"As part of the loan process, loan officers would enter applicants’ information into Lakewood, but if certain information was missing, the system would generate a 'hard stop' that would prevent the loan file from moving forward in the process."
To learn more about the CFPB's findings, click on the image above.