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News Release – Thursday, January 16, 2025
Illinois Joins States in Levying $20 Million Penalty Against Nation’s Largest Nonbank Mortgage Servicing Company
CHICAGO – Illinois and 52 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 for 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.
“Safeguarding the personal information of Illinois consumers is a top priority for the Illinois Department of Financial and Professional Regulation (IDFPR),” said IDFPR Secretary Mario Treto, Jr. “We encourage businesses with concerns about cybersecurity compliance and best practices to work with IDFPR’s Division of Banking to ensure their customers are protected.”
State regulators in California, Maryland, North Carolina, and Washington State led the multistate effort, which found that the Bayview Companies’ information technology and cybersecurity practices did not meet federal and state requirements. Furthermore, the Bayview Companies delayed the supervisory process by failing to comply with state requests in a timely and complete manner during the early stages of the examination.
