BREAKING NEWS: CFPB Orders B of A to pay $12 million penalty for Reporting False Mortgage Data
A November 28, 2023 press release made by the Consumer Financial Protection Bureau (CFPB) announced that Bank of America has been ordered to pay a $12 million penalty for submitting false mortgage lending information to the federal government.[1]
The order indicates that loan officers routinely falsified forms about mortgage applicants for at least four years, failing to ask mortgage applicants certain demographic questions as required by federal law, and then falsely reporting that applicants had chosen not to respond.
Since its inception in 1975, the Home Mortgage Disclosure Act (HMDA) requires that mortgage lenders report information about loan applications and originations to the CFPB and other federal regulators. This data represents the most comprehensive publicly available information on the US mortgage market and is used to monitor and assess how well FI’s serve the housing needs of their communities, whereby also identifying possible discriminatory lending patterns.
The CFPB’s review of Bank of America found that they not only falsely reported that applicants declined to provide demographic data, but also that the FI failed to adequately oversee accurate data collection.
This announcement yet again demonstrates the seriousness by which the CFPB and other regulators take in “Getting it Right” when collecting, analyzing, and reporting your HMDA data. There is no room for falling short. Spillane’s team of Consultants can assist you in this process! We will not only review of your HMDA/LAR data for potential errors, but can also provide snapshot analytics which will identify potential areas of risk in the areas of underwriting discrimination, REMA identification, as well as pre-screening and redlining risk related to marketing and steering. Furthermore, we’ll bring it all home with our training services, ensuring your team is informed, confident, and operating in the most compliant manner.
Please contact our Director of Sales, Bill Dolan, to hear more about how SCA’s HMDA Review, Compliance, and Training services can support your FI and keep you out of the headlines. Bill can be reached by email at WDolan@scapartnering.com, or by phone at (617) 694-2617.
[1] Bank of America, N.A. | Consumer Financial Protection Bureau (consumerfinance.gov)
