HomeTop U.S. NewsBank of America Hit With $12 Million Fine for Submitting Inaccurate Mortgage...

Bank of America Hit With $12 Million Fine for Submitting Inaccurate Mortgage Information

The U.S. Consumer Financial Protection Bureau (CFPB) announced on Tuesday that Bank of America accepted to pay a $12 million fine for submitting inaccurate information about its mortgage applicants.

According to CFPB, Bank of America loan officers failed to ask applicants routine questions about certain demographic data like race, ethnicity, and sex, and then filled out the missing data, mostly falsely, themselves. By doing so, the bank violated the Home Mortgage Disclosure Act, which was enacted in 1975 with the goal of providing transparency about the lending process and discouraging discrimination to certain geographical areas and demographics.

“We will be taking additional steps to ensure that Bank of America stops breaking the law,” said CFPB’s Director Rohit Chopra in a statement.

Bank of America engaged in providing false information about mortgage applications between 2016 and 2021, according to CFPB. However, although the bank accepted the fine, it didn’t provide an admission of guilt or deny its wrongdoings.

Bank of America was the fifth largest mortgage lender in the United States in 2022 by dollar amount with $72 billion. It ranked sixth among the largest mortgage lenders in terms of volume in the same period, closing 121,486 loans. 

Stocks Hold Steady Ahead of Inflation Report

U.S. equities remained largely muted on Tuesday after reaching all-time highs as investors awaited the release of a crucial inflation report. The PCE index,...

Domino’s Pizza Beats Quarterly Estimates Amid Rebound in Demand

Domino's Pizza reported its financial results for the fourth quarter on Monday, beating Wall Street expectations. Same-store sales rose 2.8% over the quarter, beating...

U.S. Homeowners Remain In Homes Longer Than They Did 20 Years Ago

A study by real estate brokerage Redfin found that U.S. homeowners are remaining in their existing homes for longer than they did 20 years...