One of the nation’s largest banks has been hit with a multi-million dollar fine by the Consumer Financial Protection Bureau (CFPB).
The agency says Bank of America will pay $12 million for repeatedly sending false information to federal regulators.
The CFPB says BofA has routinely violated the Home Mortgage Disclosure Act, which was enacted in 1975.
The law requires lenders to maintain certain records and submit data on loan applications and originations to the CFPB to protect consumers from predatory practices in the residential mortgage market.
The CPFB says hundreds of BofA loan officers neglected their duty to ask mortgage applicants a number of demographic questions as required by federal law. But instead of finding out the necessary details, loan officers incorrectly reported that 100% of mortgage applicants chose not to provide their demographic information for a three-month period.
The regulator also says BofA failed to ensure its loan officers provided accurate information on mortgage applications. According to the CFPB, the lender’s loan officers failed to collect required demographic data from mortgage applicants as early as 2013, but BofA chose to overlook the deficiency.
Says CFPB Director Rohit Chopra:
“Bank of America violated a federal law that thousands of mortgage lenders have routinely followed for decades. It is illegal to report false information to federal regulators, and we will take additional steps to ensure that Bank of America stops breaking the law.”
In addition to the $12 million fine, the CFPB is demanding that Bank of America take action to end the illegal data collection practice.
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