The CFPB recently issued a consent order and a $12 million fine against a large national bank for failing to accurately collect and report HMDA data. According to the CFPB, instead of asking applicants for their race, ethnicity, and sex, the bank’s loan officers falsely recorded that the applicants chose not to provide the information. The CFPB concluded that by reporting inaccurate information, the bank violated HMDA, Regulation C, and the CFPA.
In addition to the $12 million civil money penalty, the consent order, among other things, requires the bank to develop, implement, and maintain policies and procedures to ensure compliance with HMDA and Regulation C that includes:
