CFPB Penalizes Bank of America: $12M Fine for Data Misreporting
A major national bank is facing a substantial penalty from the Consumer Financial Protection Bureau (CFPB).
The CFPB has mandated that Bank of America pay a $12 million fine due to repeated submission of inaccurate information to federal regulators.
This action comes as a result of Bank of America’s consistent violation of the Home Mortgage Disclosure Act, a law established in 1975. The Act necessitates lenders to uphold specific records and furnish data regarding loan applications and origins to safeguard consumers against exploitative practices in the residential mortgage market.
The CFPB investigation unveiled that numerous BofA loan officers neglected their responsibility to inquire about several demographic details as mandated by federal law. Rather than pursuing these essential details, the loan officers falsely reported that 100% of mortgage applicants chose not to disclose their demographic data over a three-month period.
Furthermore, the regulator found that Bank of America failed to ensure accurate information was provided on mortgage applications. Allegedly, the lender’s loan officers neglected to collect necessary demographic data from mortgage applicants as far back as 2013, yet Bank of America chose to disregard this deficiency.
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CFPB Director Rohit Chopra expressed that Bank of America had violated a federal law that many mortgage lenders have routinely followed for decades. He emphasized that it’s illegal to report false information to federal regulators and asserted that further steps would be taken to ensure Bank of America stops breaking the law.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
