Prairie State Wire

Illinois, along with 52 state financial regulatory agencies, has imposed a $20 million penalty on Bayview Asset Management LLC and its affiliates for inadequate cybersecurity practices. The companies affected include Lakeview Loan Servicing, Community Loan Servicing, and Pingora Holdings. This action follows a data breach that compromised the information of 5.8 million customers.

The fine emphasizes the need for businesses to adhere to state regulations designed to protect consumer data and respond promptly to supervisory requests from state regulators.

"Safeguarding the personal information of Illinois consumers is a top priority for the Illinois Department of Financial and Professional Regulation (IDFPR)," stated IDFPR Secretary Mario Treto, Jr. He added that businesses concerned about cybersecurity compliance should collaborate with IDFPR's Division of Banking to ensure customer protection.

Regulators from California, Maryland, North Carolina, and Washington State spearheaded this multistate initiative. Their investigation revealed that Bayview Companies' IT and cybersecurity measures failed to meet both federal and state standards. Additionally, the companies were found to have delayed cooperation during the initial stages of regulatory examination by not fulfilling state requests adequately or promptly.