CFPB and FTC Unite Against Freedom Mortgage Corporation's False Data Scandal

1 min read
Source: Consumer Financial Protection Bureau
CFPB and FTC Unite Against Freedom Mortgage Corporation's False Data Scandal
Photo: Consumer Financial Protection Bureau
TL;DR

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Freedom Mortgage Corporation, accusing the company of submitting mortgage loan data that contained numerous errors, violating the Home Mortgage Disclosure Act (HMDA) and a 2019 consent order. This comes after Freedom Mortgage was fined $1.75 million in August 2023 for illegal kickbacks. The CFPB alleges that the company's HMDA data for 2020 had widespread inaccuracies, with errors in over 174,000 data entries affecting nearly 20% of its mortgage loan applications. The lawsuit seeks to stop Freedom's alleged unlawful conduct and impose a civil money penalty.

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