It has been just revealed the fact that BoF is going to pay a considerable fine for repeatedly breaking the law. Check out the latest details about what happened below.
BoF to pay a fine for breaking the law
Bank of America, one of the largest banking institutions in the country, is being fined millions of dollars by the Consumer Financial Protection Bureau (CFPB) for providing false information to federal regulators on multiple occasions.
The CFPB has stated that BofA has consistently violated the Home Mortgage Disclosure Act, which was implemented in 1975.
The act mandates lenders to maintain certain records and submit data concerning loan applications and originations to the CFPB, in order to protect consumers against predatory practices in the residential mortgage market.
The Consumer Financial Protection Bureau (CFPB) has accused several hundred Bank of America loan officers of neglecting their legal responsibility to ask mortgage applicants certain demographic questions.
The CFPB claims that the loan officers falsely reported that 100% of mortgage applicants opted not to provide their demographic data, instead of following up to get the required information.
This happened over a three-month period. Furthermore, the regulator asserts that Bank of America failed to ensure the accuracy of information provided by its loan officers on mortgage applications.
The CFPB claims that the lender’s loan officers were not collecting the required demographic information from mortgage applicants as early as 2013, but Bank of America chose to ignore this issue.
Says CFPB Director Rohit Chopra,
“Bank of America violated a federal law that thousands of mortgage lenders have routinely followed for decades. It is illegal to report false information to federal regulators, and we will be taking additional steps to ensure that Bank of America stops breaking the law.”
Besides the $12 million fine, the CFPB is requiring Bank of America to take measures that would stop its illegal data-collection practice, according to the latest reports coming from the Daily Hodl.
