This week, the New Mexico Financial Institutions Division, along with financial regulatory agencies from 52 other U.S. jurisdictions, announced a coordinated action against Bayview Asset Management LLC and three of its affiliates. The action addresses deficient cybersecurity practices and non-compliance with examination authority following a data breach affecting 5.8 million customers.
Bayview Asset Management LLC, also known as Bayview Companies, is at the center of this $20 million settlement and corrective plan. This marks the first collective multistate enforcement action by state regulators for a mortgage company data breach. The enforcement highlights the importance of adhering to state requirements for consumer data protection and compliance with supervisory demands.
“In the wake of a data breach, it is vital that companies collaborate closely with state regulators to ensure transparency, accountability, and swift action. By working together, we can better safeguard consumer trust and strengthen protections against future threats,” stated Mark Sadowski, Director of the New Mexico Financial Institutions Division.
The multistate effort was led by state regulators in California, Maryland, North Carolina, and Washington. It was found that Bayview Companies' information technology and cybersecurity practices failed to meet federal or state standards. Additionally, Bayview Companies delayed the supervisory process by not complying promptly with state requests during early examination stages.
Besides the monetary penalty, Bayview Companies have agreed to undertake specific corrective actions. These include improving cybersecurity programs, undergoing independent assessments, and providing three years of additional reporting to states.
State financial regulators oversee more than 33,000 nonbank financial services companies through the Nationwide Multistate Licensing System (NMLS), including mortgage companies and other financial service providers.
New Mexico residents seeking more information about the settlement can contact the New Mexico Financial Institutions Division at 505-476-4885 or visit their website at www.rld.nm.gov/financial-institutions. Residents may also use NMLS Consumer Access to verify if a company is licensed in New Mexico or view past enforcement actions.
