Overview
The Division of Consumer Services joined other state regulators in taking two multistate enforcement actions. Both were finalized in January and are worth noting due to their magnitude and unprecedented nature.
Bayview Asset Management LLC and Three of its Affiliates
First, the Enforcement Unit, in coordination with 52 other financial regulators, entered a settlement agreement and Consent Order with Lakeview Loan Servicing LLC, Pingora Loan Servicing LLC, Bayview Asset Management LLC and Community Loan Servicing LLC.
The action and subsequent affirmative relief and penalties arose in response to a data breach impacting 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 requests.
Block Inc dba Cash App
Second, the Examinations Unit, Regulatory Affairs, and Enforcement Unit, along with more than 48 other regulators, reached an $80 million multistate settlement with money transmitter licensee Block Inc dba Cash App.
This action stemmed from a multistate compliance examination in 2023, led by the Examinations Unit, which cited repeat Bank Secrecy Act (BSA)/Anit-Money Laundering (AML) violations. The Consumer Services team helped lead the supervisory engagement efforts to address the noted deficiencies and over the course of 2024, also worked with the core working group of state counterparts and the licensee to reach a resolution to the issues. Block agreed to pay an $80 million penalty to the state agencies, hire an independent consultant to review the comprehensiveness and effectiveness of its BSA/AML program, and submit a report to the states within nine months.