Inaccurate HMDA Reporting Leads to $1.75M Fine

The CFPB has fined Freedom Mortgage Corporation $1.75 million for filing inaccurate Home Mortgage Disclosure Act (HMDA) data. Freedom is one of the 10 largest HMDA reporters in the nation.

The bureau said that Freedom submitted erroneous mortgage-loan data for 2014 to 2017 in a Wednesday announcement. The bureau determined that the company intentionally recorded inaccurate race, ethnicity and sex information.

"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," the release stated.