Bank of America faces $12 million fine for data accuracy violations in mortgage applications

Bank of America has consented to a $12 million fine to resolve U.S. regulatory allegations of routinely providing inaccurate information about mortgage applicants to the federal government. The U.S. Consumer Financial Protection Bureau (CFPB) revealed that over 400 loan officers at the bank neglected to inquire about applicants’ race, ethnicity, and sex as required, subsequently providing false information.
Failure to precisely report demographic information constitutes a breach of the Home Mortgage Disclosure Act, a law from 1975 designed to aid regulators in evaluating whether lenders are addressing their communities’ housing needs and avoiding discriminatory lending practices, as stated by the CFPB. Bank of America, while accepting the civil fine, neither admitted nor denied wrongdoing in relation to the alleged conduct spanning from 2016 to 2021.
CFPB Director Rohit Chopra mentioned in a statement that further measures will be implemented to ensure Bank of America ceases its legal violations, without providing additional details. The Charlotte-based bank stated in a release that it accurately collected demographic data over 99% of the time. After receiving a complaint in 2020, the bank promptly notified the government. Additionally, it highlighted enhancements in employee training to ensure proper collection of demographic data from mortgage applicants.
As per its most recent quarterly report, Bank of America’s consumer lending business initiated $15.5 billion in first mortgages from January to September. This reflects a 61% decrease from the previous year, a period with lower interest rates.

Next (Property registrations in Mumbai hit 11-year high in November 2023)

Bank of America faces $12 million fine for data accuracy violations in mortgage applications

This Month

Overview

Explore

Join Us