November 29, 2023

CFPB fines Bank of America $12M for HMDA violations

CFPBThe CFPB Tuesday announced a $12 million order against Bank of America for submitting false mortgage lending information to the federal government under the Home Mortgage Disclosure Act (HMDA). The bureau’s order requires Bank of America to pay the full $12 million to the CFPB’s victims relief fund.

In the order, the CFPB alleges that for at least four years, hundreds of Bank of America loan officers failed to ask mortgage applicants certain demographic questions required under federal law, and then falsely reported that the applicants had chosen not to respond. In addition, the order states Bank of America failed to adequately oversee its mortgage loan officers to ensure accurate data collection.

The bureau has taken numerous actions against Bank of America for violating federal law, including a recent joint order from the CFPB and the Office of the Comptroller of the Currency where Bank of America was ordered to pay over $250 million for withholding credit card rewards, opening fake accounts, and illegally charging what the bureau calls “junk fees.”

NAFCU will continue to monitor CFPB enforcement actions and update credit unions via NAFCU Today.