CFPB Has Spanked BofA With A $12 Million Penalty For Violating HMDA And Regulation C
The CFPB has spanked BofA with another fine. Bank of America signed a consent agreement say the bank violated the Home Mortgage Disclosure Act. HMDA mandates mortgage lenders report specific information about loan applications and originations to federal regulators.
The CFPB issued the $12 million fine because the bank submitted inaccurate mortgage lending information to the federal government.
The consent order issued last week states that for least four years, Bank of America’s loan officers failed to ask certain required demographic questions to mortgage applicants. Consequently, the bank then falsely reported that these applicants had chosen not to respond.
Bank of America did not admit or deny wrongdoing in the matter by accepting the penalty.
Hundreds of Bank of America loan officers reported that 100% of mortgage applicants chose not to provide their demographic data. However, these loan officers were not asking applicants for demographic data. Instead, they were falsely recording that the applicants chose not to provide the information.
This conduct constitutes a violation of HMDA and the Consumer Financial Protection Act.
The CFPB has ordered BofA to pay the $12 million penalty to the CFPB’s victims relief fund. The agency has also ordered the bank to take corrective measures to prevent further violations. This enforcement action comes on the heels of other penalties imposed on BofA by the CFPB and other regulatory agencies in recent years.
Bank of America is one of the largest banks in the United States with $2.4 trillion in assets as of June 2023. As a federally chartered bank it is required to adhere to federal laws and regulations. The Home Mortgage Disclosure Act and its data collection requirements serve as a tool for monitoring lending practices. It also identifies potential discriminatory lending patterns.
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