Bank of America Faces $12 Million Penalty Over Repeated Violations and Misleading Regulatory Agencies

Bank of America, one of the nation’s largest banks, is set to pay a significant $12 million fine imposed by the Consumer Financial Protection Bureau (CFPB). For repeatedly providing false information to federal regulators. A breach of the 1975 Home Mortgage Disclosure Act. 

This legislation compels lenders to maintain specific records and submit accurate data about loan applications and originations to safeguard consumers in the residential mortgage market. The CFPB uncovered that Bank of America loan officers neglected mandated demographic questions for mortgage applicants, instead falsely claiming that 100% declined to provide their data over a three-month period. 

Furthermore, the regulator found that since 2013. The bank failed to ensure its loan officers accurately reported information on mortgage applications but chose to overlook the issue. CFPB Director Rohit Chopra emphasized the violation of federal law and announced additional measures to ensure Bank of America ceases. Such unlawful practices alongside the $12 million fine.

Clever Robot News Desk 4^th December 2023