New

Cfpb Cuts Short Monitoring Of Bofa Mortgage Practices

The Consumer Financial Protection Bureau (CFPB) cut short a five-year agreement with Bank of America over the bank’s alleged submissions of false mortgage data. The agreement was supposed to be in place through at least November 2028.

In a filing made public Monday, the CFPB said the bank “fulfilled the obligations” of the agreement signed in November 2023, which included a $12 million civil penalty. The agreement was terminated on June 4, according to the regulator.

The CFPB, under the leadership of former Director Rohit Chopra, claimed that Bank of America loan officers failed to collect race, ethnicity and sex data on mortgage applications between 2016 and 2020, violating the Home Mortgage Disclosure Act (HMDA) in the process.

The bureau also claimed that BofA falsely accused customers of declining to provide this information. According to the CFPB, the bank identified the practice as early as 2013 but “turned a blind eye for years.”

Under acting director Russell Vought, the CFPB’s enforcement and supervision staff have largely been barred from carrying out their prior duties. Vought has twice sought to reduce the staff to as few as 200 workers. A federal appeals court will ultimately determine whether the agency can be scaled back to such staffing levels.

The CFPB has also voluntarily dismissed about 20 enforcement actions since February, including cases against Rocket Companies, Townstone Financial and Vanderbilt Mortgage.

Back to Listing

credit:

Cfpb Cuts Short Monitoring Of Bofa Mortgage Practices

Popular Products