Feds’ Bank of America oversight tied to mortgage problems ends years early
The Consumer Financial Protection Bureau said it has ended its Bank of America oversight related to the bank providing false mortgage lending information to the federal government from 2016 to 2021.
The consent order was terminated in early June, three years ahead of schedule.
The Charlotte-based bank has “fulfilled the obligations under the consent order” governing the disposition of the case. That includes developing policies and procedures to ensure compliance with the Home Mortgage Disclosure Act, an annual report, and system improvements, according to the federal regulator’s filing this month.
In 2023, Bank of America also was ordered to pay a $12 million penalty for filing false mortgage reports for at least four years.
Bank of America declined a request for comment.
Why Bank of America was under a consent order
Hundreds of loan officers at Bank of America failed to ask applicants certain demographic questions required by federal law and then said the applicants declined to respond, The Charlotte Observer previously reported.
The CFPB cited a three-month period in 2020 involving 113 loan officers, and a three-month period between 2016 and 2021 with 290 officers, who recorded that mortgage applicants chose not to report their race, ethnicity and gender.
Data collected under the Home Mortgage Disclosure Act is used for the U.S. mortgage market, to see if financial institutions are serving the housing needs of communities and to find possible discriminatory lending practices.
Bank of America did not admit or deny any findings of fact or conclusion of law in the case.
The consent agreement was to be terminated in five years, but allowed regulator to end it sooner if the bank met all of the compliance requirements.
Bank of America, the second largest bank in the U.S. by consolidated assets, has 213,000 employees with more than 19,000 workers in the Charlotte region.
This story was originally published June 30, 2025 at 5:23 AM with the headline "Feds’ Bank of America oversight tied to mortgage problems ends years early."
