- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-11-29T20:19:00
Bank of America will pay a $12 million penalty for allegedly reporting false mortgage lending data to the federal government, under a settlement reached with the Consumer Financial Protection Bureau (CFPB).
Bank of America loan officers failed to ask applicants certain demographic questions like race, ethnicity, and sex, as required by the Home Mortgage Disclosure Act (HDMA). Those loan officers then reported the applicants failed to respond, the CFPB said Tuesday in a press release. Bank of America allegedly used that information to fulfill its HDMA reporting requirements.
During a three-month period in 2020, 113 Bank of America loan officers reported on 100 percent of the mortgage applications they processed that applicants had chosen not to provide the demographic information, according to the CFPB’s consent order. Another 290 loan officers were later found to have recorded that 100 percent of their applicants had chosen not to provide the information in applications they took over a three-month period within the years 2016-21.
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The Financial Industry Regulatory Authority fined a Bank of America subsidiary $90,080 for filing untimely or inaccurate notifications related to security distributions and failing to adopt an adequate supervisory system.
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Bank of America Securities agreed to pay $24 million in settling with the Financial Industry Regulatory Authority for allegedly failing to supervise the “spoofing” activities of two former traders in U.S. Treasury markets.
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The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
