6/5/19 – The Consumer Financial Protection Bureau (Bureau) announced a settlement with Freedom Mortgage Corporation (Freedom), one of the ten largest Home Mortgage Disclosure Act (HMDA) reporters nationwide.

Freedom MortgageFreedom is a mortgage lender with its principal place of business in Mount Laurel, N.J. For each year from 2013 through 2016, it originated more than 50,000 home-purchase loans, including refinancings of home-purchase loans. Freedom is required to collect, record, and report data on HMDA-covered transactions to comply with HMDA and Regulation C.

Inaccurate reporting

According to the consent order, the Bureau found that Freedom violated HMDA and Regulation C by submitting mortgage-loan data for 2014 to 2017 that contained errors. The Bureau found that Freedom reported inaccurate race, ethnicity, and sex information and that much of Freedom’s loan officers’ recording of this incorrect information was intentional. For example, certain loan officers were told by managers or other loan officers that, when applicants did not provide their race or ethnicity, they should select non-Hispanic white regardless of whether that was accurate.

To pay penalty of $1.75 million for violations

Under the terms of the consent order, Freedom must pay a civil money penalty of $1.75 million and take steps to improve its compliance management to prevent future violations.

The consent order is available at: https://files.consumerfinance.gov/f/documents/cfpb_freedom-mortgage-corporation_stipulation_2019-06.pdf

217 words|1.1 min read|Categories: Consumer Issues, scams|By |Published On: June 8th, 2019|Last Updated: August 2nd, 2020|

Share this article

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Martindale-Hubbell Award
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Martindale-Hubbell Award
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau

In Case You Missed It

  • Buy Now Pay Later (BNPL): Simple and Risky Buy now pay later (BNPL) lets you split the cost of something into smaller payments over time. It sounds easy—but there are some risks you should know [...]

  • The National Consumer Law Center (NCLC) is warning that the Trump Administration's actions to shut down the Consumer Financial Protection Bureau (CFPB) will devastate working families, honest businesses, and the economy. "Millionaires and billionaires are [...]

  • U.S. credit card debt reached a record $1.17 trillion In the third quarter of 2024, U.S. credit card debt reached a record $1.17 trillion, a significant increase from $770 billion in early 2021. This surge [...]

  • Reprint from the IRS website: Presidents Day weekend is peak time for IRS phone traffic. Skip the wait by visiting IRS.gov. IR-2025-22, Feb. 12, 2025 WASHINGTON — With the 2025 filing season underway and the [...]