Wisconsin Joins States in Levying $20 Million Penalty Against Nation’s Largest Nonbank Mortgage Servicing Company

MADISON, Wis. — The Wisconsin Department of Financial Institutions (DFI) today announced Wisconsin and 52 other state financial regulatory agencies have taken coordinated action against mortgage company Bayview Asset Management LLC, and three of its affiliates, Lakeview Loan Servicing, Community Loan Servicing, and Pingora Holdings (collectively the Bayview Companies), for deficient cybersecurity practices and not fully cooperating with state regulators following a data breach that impacted 5.8 million customers.

The $20 million fine and corrective plan underscore the importance of meeting state requirements to protect consumer data and complying with state supervisory demands.

“This multistate action and fine serve as an important reminder for our Wisconsin licensees: safeguarding consumer data is essential, and compliance with both federal and state regulations is non-negotiable,” said DFI Secretary Cheryll Olson-Collins. “We encourage all of our licensees affected by any data breach to contact our Division of Banking. Taking this step is vital for ensuring consumer protection and maintaining confidence in our licensed financial services industries, including the nonbank mortgage industry, anytime a data breach occurs.”

State regulators in California, Maryland, North Carolina, and Washington State led the multistate effort, which found that Bayview Companies’ information technology and cybersecurity practices did not meet federal or state requirements. Furthermore, the Bayview Companies delayed the supervisory process by failing to comply with state requests in a timely and complete manner in the early stages of the examination.

In addition to the monetary penalty, the Bayview Companies have agreed to take specified corrective actions, improve cybersecurity programs, undergo independent assessments, and provide three years of additional reporting to the states.

State financial regulators license and supervise more than 33,000 nonbank financial services companies through the Nationwide Multistate Licensing System (NMLS^®), including mortgage companies, money services businesses, consumer finance providers, and debt collectors. The Conference of State Bank Supervisors (CSBS), on behalf of state regulators, operates NMLS^®.

Wisconsin residents who have questions about this settlement should contact the DFI’s Division of Banking by calling (608) 261-7578 or emailing DFIMortgageBanking@dfi.wisconsin.gov. Residents can also visit NMLS^® Consumer Access to verify that a company is licensed to do business in Wisconsin and view past enforcement actions.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.