Announcement: Settlement Agreement and Consent Order Against Bayview Asset Management, LLC

AUSTIN, Texas- The Department of Savings and Mortgage Lending (SML), an agency of the State of Texas, and 52 state financial regulatory agencies announced today a coordinated legal settlement agreement against mortgage banker 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, including 555,307 Texans.

SML regulates the non-depository residential mortgage loan industry in Texas by licensing or registering mortgage bankers, mortgage companies, individual mortgage loan originators, and mortgage servicers operating in Texas.

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

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.

SML is dedicated to regulating the residential mortgage loan industry, enhancing consumer confidence in the residential mortgage market, and providing a healthy mortgage lending environment for Texans. This settlement demonstrates how state regulators work together to hold companies accountable. It also serves as a reminder that SML monitors compliance and will take enforcement action as needed to ensure that companies in the residential mortgage loan industry safeguard consumer information and that there is fair competition in the residential mortgage loan market in Texas. Anyone who believes they have been harmed by a residential mortgage loan entity regulated by SML may file a complaint with SML. Information and forms are available on the SML website: sml.texas.gov.