The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in federal court yesterday alleging that Freedom Mortgage Corp. submitted legally required mortgage loan data that was riddled with errors, according to a CFPB press release. The CFPB alleges that Freedom’s practices violate both the Home Mortgage Disclosure Act (HMDA) and a 2019 consent order. In a recent separate matter, in August 2023 the CFPB fined Freedom $1.75 million for paying illegal kickbacks for mortgage loan referrals. “The CFPB is suing Freedom Mortgage for violating a law enforcement order and for providing false data on its mortgage operations,” said CFPB Director Rohit Chopra. “The CFPB will continue to focus on ending the cycle of misconduct by repeat offenders in the financial industry.” Freedom Mortgage Corp. is a privately held nonbank mortgage loan originator and servicer headquartered in Boca Raton, Fla. In 2020, Freedom reported HMDA data on over 700,000 mortgage loan applications and originated nearly 400,000 HMDA-reportable loans worth almost $100 billion.
