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CFPB settles with Washington Federal Bank over flawed data reporting


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CFPB settles with Washington Federal Bank over flawed data reporting

The Consumer Financial Protection Bureau settled with Seattle-based Washington Federal Bank NA to address the regulator's finding that the bank reported inaccurate Home Mortgage Disclosure Act data about its mortgage transactions for 2016 and 2017.

The consent order requires the bank to pay a $200,000 civil money penalty and develop and implement an effective compliance-management system to prevent future violations.

The regulator found that Washington Federal failed to report accurate data about its mortgage-loan applications to the CFPB, violating the Home Mortgage Disclosure Act and certain other regulations.

In each of 2016 and 2017, the bank reported Home Mortgage Disclosure Act data for over 7,000 mortgage applications, according to the CFPB. The regulator found that these data included significant errors. According to the CFPB, the 2016 errors were caused by a lack of appropriate staff, insufficient staff training and ineffective quality control, while the 2017 errors were directly related to weaknesses in Washington Federal's compliance-management system, specifically in the areas of board and management oversight, monitoring and policies and procedures.

Washington Federal neither admitted nor denied the regulator's findings.

The bank is currently subject to a 2013 consent order with the CFPB based on the regulator's previous findings that Washington Federal had violated the Home Mortgage Disclosure Act and Regulation C.