FOR IMMEDIATE RELEASE FROM THE WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS

Wednesday, Jan. 8, 2025
CONTACT: Lyn Peters, DFI Director of Communications
PH 360-902-8731, [email protected]

Rick St. Onge, Division of Consumer Services, Chief of Examinations
PH 360-902-8703, [email protected]

Washington State DFI Joins 52 Regulators in Levying $20 Million Penalty Against Nation’s Largest Nonbank Mortgage Servicing Company

Agreement outlines companies’ failure to notify regulators in a timely manner, multiple compliance violations, and required corrective action

Olympia – Today, the Washington State Department of Financial Institutions (DFI) and 52 other financial regulators announced that they have taken coordinated action against Bayview Asset Management LLC, and three of its affiliates:

  • Lakeview Loan Servicing,
  • Community Loan Servicing, and
  • Pingora Holdings (collectively the Bayview Companies).

The regulatory agency findings include:

  • The companies had deficient cybersecurity practices.
  • The companies failed to comply with state regulators' examination authority following a data breach.
  • The data breach impacted 5.8 million customers.

The $20 million multistate fine and corrective plan is the first such action by state regulators for a mortgage company data breach. The enforcement action stresses the importance of meeting state requirements to protect consumer data and complying with state supervisory demands.

“Data breaches often pose potential financial harm to the people of Washington State,” DFI Director Charlie Clark said. “Homeowners in particular provide significant amounts of personally identifiable information to their lenders. This puts them at an increased risk of serious financial harm in the event of a data breach. Businesses have a duty to comply with regulatory supervision and directives to ensure their client information is protected from a data breach. When they fail to protect their data, we will hold them responsible.”

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

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.

Washington State residents who have questions about the coordinated action should contact DFI at 877-746-4334 or [email protected]. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in Washington State, and they may also view past enforcement actions.

Anyone concerned about keeping their credit safe (including from data breaches) should freeze their credit and check their credit report often for credit you did not authorize. Currently, you can check your credit report weekly free of charge at AnnualCreditReport.com. 

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About DFI ▪ www.dfi.wa.gov ▪ 360-902-8700 ▪ 877-RINGDFI (746-4334)

The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: www.facebook.com/wadfi ■ www.instagram.com/wastatedfi/ ■ twitter.com/dficonsumers ■ https://dfi.wa.gov/financial-education/blog ■ https://www.youtube.com/user/WADFI ■ www.homeownership.wa.gov ■ www.linkedin.com/company/state-of-washington-department-of-financial-institutions/

About the Division of Consumer Services ▪ www.dfi.wa.gov/cs ▪ 360-902-8703 The mission of the Division of Consumer Services is to protect consumers from illegal and fraudulent financial products and services. The division accomplishes its mission through licensing, licensee examinations, investigations, and enforcing selected state and federal statutes and rules. Consumer Services regulates the business activities of consumer loan companies, mortgage brokers, money transmitters and currency exchangers, as well as check cashers and sellers, also known as "payday lenders." The Division is entirely self-supporting, with funding provided by licensing, auditing, and policing of regulated businesses and individuals. No money is received from the state General Fund or other public revenue source.

CSBS Media Contact: Susanna Barnett, (202) 680-3143, [email protected]

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