Washington Federal Bank has agreed to pay a fine of $ 200,000 to clarify allegations by the Consumer Financial Protection Bureau that it reported inaccurate data on home loan applications.
According to the CFPB, the Seattle-based institution, with assets of $ 18 billion, filed data on the Home Mortgage Disclosure Act in 2016 and 2017 that contained significant errors.
HMDA data is used by the CFPB and other regulatory agencies to investigate and identify fair lending violations. Inaccurate data can make it difficult for regulators and the public to root out discrimination in mortgage lending, the CFPB said in a press release.
Washington Federal reported HMDA data on 7,000 loans in 2016 and 2017. The bank is currently subject to a 2013 warrant order based on previous findings by the CFPB of violating HMDA and Regulation C.
"The occurrence of errors in many different areas instead of focusing on one or two areas indicates wide-ranging errors [compliance management system] and a lack of adequate resources because the errors were not caught and the errors were not direct can be attributed to one or two system errors, "the office said in the order published Tuesday.
The bank's HMDA errors in 2016 were caused by staff shortages, insufficient training and ineffective quality control. In a review of 100 files, the CFPB found a 40% error rate in Washington Federal's 2016 HMDA data.
The 2017 HMDA errors are directly related to weaknesses in the bank's compliance management system, supervision, monitoring and monitoring as well as the bank's policies and procedures, according to the CFPB.
The bank did not immediately respond to a request for comment.
In addition to the $ 200,000 civil fine, the bank must develop and implement an effective compliance management system to prevent future violations, according to the CFPB.