Nations Direct Mortgage Latest to Fall Victim to Data Breach

Another company in the mortgage industry is reeling from a cybersecurity incident.

Nevada-based Nations Direct Mortgage, a wholesale lender that sells to Fannie Mae, Freddie Mac and Ginnie Mae, recently disclosed a data breach to the Office of the Main Attorney General, HousingWire reported. While the incident was only shared to the authority last week, it took place around the end of 2023.

Nations Direct said that names, addresses, Social Security numbers and loan numbers may have been compromised by a third party. More than 83,000 customers may have been impacted by the breach.

The company launched an investigation and containment measures immediately after becoming aware of the data breach. It was able to contain the incident quickly, it said. Victims were notified at the end of last month.

Nations Direct has pledged 24 months of free identity monitoring services through Kroll to victims, including credit monitoring, $1 million in identity fraud loss reimbursement, fraud consultation and identity theft restoration.

The firm, which was founded in 2007, offers government mortgages, conventional mortgages and nonqualified mortgages. In the first 11 months of last year, Nations Direct originated $1.4 billion of loans.

At the start of the year, top mortgage lender LoanDepot fell victim to a cyberattack that compromised the data of more than 16 million customers. Some of the company’s systems were taken offline, causing customers to struggle getting into accounts or to close deals on mortgages.

LoanDepot promised free credit monitoring and identity protection services for those impacted.

In the fall of 2023, Mr. Cooper was hit by a major cyberattack, forcing the company to temporarily shut down key systems and preventing customers from making mortgage and loan payments. More than 14 million customers were affected by the incident, which hit the company’s bottom line to the tune of $25 million.

Other companies to recently succumb to cybersecurity incidents include Florida-based title company Fidelity National Financial and Santa Ana-based First American Financial.

— Holden Walter-Warner