CFPB Takes Action Against Repeat Offender Freedom Mortgage

On June 18, 2024, the CFPB filed a proposed order that would require Freedom Mortgage Corporation to pay a $3.95 million penalty for submitting error-riddled mortgage loan data to federal regulators. In particular, Freedom Mortgage has submitted incorrect mortgage data in violation of HMDA, a 2019 CFPB order, and the Consumer Financial Protection Act.

CFPB Director Rohit Chopra said the following in a statement:

“Freedom Mortgage is a repeat offender that has ignored requirements to submit accurate data that help federal regulators maintain a fair home lending market. The CFPB is making sure that Freedom Mortgage pays for their actions as well as institutes guardrails to prevent future violations.”

Freedom Mortgage Corporation is a privately held nonbank mortgage loan originator and servicer. In 2020,  Freedom reported HMDA data on over 700,000 mortgage loan applications which contained widespread errors across numerous data fields because of systemic problems with its compliance management systems. The company’s HMDA violations occurred while Freedom Mortgage was subject to the 2019 law enforcement order.

If entered by the court, the CFPB’s proposed stipulated judgment and order will require Freedom Mortgage to:

  • Prevent future HMDA violations by conducting regular audit, test, and correct the company’s HMDA data.

  • Pay a $3.95 million penalty to the CFPB’s victims relief fund.

Read the CFPB’s press release here.

The consent order can be found here.

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