Bank of America Fined $12 Million by CFPB Over Mortgage Data Reporting

By Dean Seal

The U.S. Consumer Financial Protection Bureau has fined Bank of America $12 million for allegedly submitting inaccurate mortgage lending information to the federal government.

The agency said Tuesday that the bank's loan officers failed in some instances to ask mortgage applicants certain federally required demographic questions, including about race, ethnicity and sex, but incorrectly reported that the applicants had opted not to respond to those questions.

In a consent order with the CFPB, Bank of America neither admitted nor denied the regulator's findings but agreed to resolve the case with a $12 million penalty.

A spokesperson said that after receiving a complaint in 2020 about the demographic data collection, the Charlotte, N.C.-based bank conducted a review and notified the government, prompting the CFPB's inquiry.

"As the CFPB notes, we took additional steps in 2020 and 2021 to enhance our monitoring and training to ensure employees ask applicants for required racial, ethnic and gender information," Media Relations Head Bill Halldin said. "This data collection issue had no impact on applications."

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

November 28, 2023 14:09 ET (19:09 GMT)

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