WASHINGTON D.C., DC — On Tuesday, the Consumer Financial Protection Bureau ordered Bank of America to pay $12 million for violating federal law by providing false mortgage information to the federal government.
The CFPB said that the bank's loan officers failed to ask mortgage applicants certain demographic questions required under the Home Morgage Disclosure Act (HMDA), which was enacted in 1975. Loan officers falsely reported to the federal government that the applicants had chosen to not respond to the demographic questions.
Bank of America provided falsified mortgage lending information about applicants for at least four years, according to the CFPB.
Headquartered in Charlotte, Bank of America is the United States' second-largest bank.
The CFPB's order means that Bank of America must stop reporting illegal mortgage data and pay a $12 million penalty, which will go to the CFPB’s victims relief fund.
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