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SACRAMENTO – Today, California and 52 state financial regulatory agencies announced a 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 for not fully cooperating with state regulators following a data breach that impacted 5.8 million customers.
The $20 million fine and corrective plan contained in the final settlement highlights the importance of meeting state requirements to protect consumer data and complying with state supervisory demands.
“Lenders and servicers have a responsibility to protect consumer data and work with state regulators when a breach, intentional or otherwise, occurs” said Acting Commissioner KC Mohseni. “California was proud to help lead the effort alongside partner states and the Conference of State Bank Supervisors in holding Bayview Asset Management accountable for the data breach and to correct identified cyber security deficiencies.”
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. Consumers can visit NMLS Consumer Access to verify that a company is licensed to do business in California, and they may also view past enforcement actions.
About DFPI
The California Department of Financial Protection and Innovation (DFPI) protects consumers, regulates financial services, and fosters responsible innovation. The DFPI protects consumers by establishing and enforcing financial regulations that promote transparency and accountability. We empower all Californians to access a fair and equitable financial marketplace through education and preventing potential risks, fraud, and abuse. Learn more at dfpi.ca.gov.
The DFPI expects any person offering securities, lender, or other financial services provider that operates in California to comply with our financial laws. Consumers may submit a complaint with the DFPI online (dfpi.ca.gov/submit-a-complaint) or call toll-free at (866) 275-2677.
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