NAF reports data breach in California

New American Funding (NAF), a top-25 U.S. mortgage lender, notified the California attorney general last week of a data breach involving one of its vendors, which potentially compromises customers’ personal information. 

NAF on June 6 discovered “suspicious activity associated with information provided to one of our vendors that provided notary systems, Mobile Notary Zone,” according to the company’s disclosure.

NAF emphasized that its internal systems and data were not compromised. But the lender terminated its relationship with MNZ, alerted law enforcement and federal regulators, and initiated an internal investigation.

“We understand that an unauthorized actor gained access to systems containing New American Funding consumer data and may have taken documents,” NAF said in the filing. 

The lender said MNZ has provided “little information about the incident,” including how many customers were affected and the specific data that accessed. Because NAF couldn’t identify individual impacted customers, it notified all clients whose information was shared with MNZ. The review was completed by June 26.

The data potentially assessed included names, addresses, Social Security numbers, financial account information and other data associated with the loan closing process. MNZ hasn’t responded to HousingWire‘s request for comment.

In a statement given to HousingWire, NAF said “protecting sensitive data and information is crucial for maintaining our role as trusted financial advisors to our customers.”

“We will be reaching out to impacted customers to offer assistance and reassurance. All affected customers will be offered free credit monitoring and identity protection services,” the company said.

NAF originated about $14 billion in mortgages in 2024, ranking as the 28th-largest lender in the country, according to Inside Mortgage Finance (IMF). It also services a $69 billion portfolio. As of July, the company had 2,501 sponsored loan officers across 280 active branches, per the Nationwide Mortgage Licensing System (NMLS).

NAF joins a growing list of mortgage companies affected by cyberattacks in recent years, including AnnieMac, Mr. Cooper Group, loanDepot, Fairway Home Mortgage, Nations Direct Mortgage and Fidelity National Financial, the parent of servicer LoanCare.