The company has been hit with $5 million in fines and redress, and must change its practices to be compliant with the CFPB's orders or face additional consequences.
"It is likely to cause significant adverse consequences to banks and consumers, including causing the tightening of credit standards," the ABA said of the CFPB's proposal.
Loose IT security controls could have made it possible for a malicious employee, or an external party with access to that employee's account, to gain full control of the FHFA network.
Any regulatory action resulting from the CFPB’s recent request for information must be grounded in the bureau’s statutory authority, the Mortgage Bankers Association said.