WASHINGTON— The Consumer Financial Protection Bureau (CFPB) has ordered Bank of America to pay a $12 million penalty for submitting false mortgage lending information to the federal government under what it said is a long-standing federal law.
“For at least four years, hundreds of Bank of America loan officers failed to ask mortgage applicants certain demographic questions as required under federal law, and then falsely reported that the applicants had chosen not to respond,” the CFPB said, adding it will be taking additional steps.
The $2.4-trillion, North Carolina-based BofA violated the Home Mortgage Disclosure Act’s (HMDA) requirements that financial institutions to report demographic data about mortgage applicant, according to the CFPB, which said its review found the bank was submitting false data, including falsely reporting that mortgage applicants were declining to answer demographic questions.
The Specifics
Specifically, the CFPB said it found that Bank of America:
- Falsely reported that applicants declined to provide information. “Hundreds of Bank of America loan officers reported that 100% of mortgage applicants chose not to provide their demographic data over at least a three month period. In fact, these loan officers were not asking applicants for demographic data, but instead were falsely recording that the applicants chose not to provide the information.”
- Failed to adequately oversee accurate data collection. “Bank of America did not ensure that its mortgage loan officers accurately collected and reported the demographic data required under HMDA,” the Bureau stated. “For example, the bank identified that many loan officers receiving applications by phone were failing to collect the required data as early as 2013, but the bank turned a blind eye for years despite knowledge of the problem.”
Actions Taken
The CFPB said it has taken numerous actions against Bank of America for violating federal law. In July 2023, the CFPB and the Office of the Comptroller of the Currency (OCC) ordered Bank of America to pay over $200 million for illegally charging junk fees, withholding credit card rewards, and opening fake accounts.
In 2022, CFPB and OCC ordered Bank of America to pay $225 million in fines and refund hundreds of millions of dollars to consumers for botched disbursement of state unemployment benefits. That same year, Bank of America also paid a $10 million penalty for unlawful garnishments of customer accounts, the CFPB said.
And in 2014, the CFPB ordered Bank of America to pay $727 million to consumers for illegal and deceptive credit card marketing practices.
The new order requires BofA to pay $12 million to theCFPB’s victims relief fund.
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