Bank of America Fined $12M by CFPB for Submitting False Mortgage Data
November 30, 2023
🌥️Trending News
Bank ($NYSE:BAC) of America, one of the largest financial institutions in the United States, has been fined $12 million by the Consumer Financial Protection Bureau (CFPB) for submitting inaccurate mortgage data. The CFPB charged Bank of America with submitting inaccurate mortgage data to multiple government agencies over a five-year period. This included submitting inaccurate data about the loans’ borrowers, loan amounts, and property values.
The bureau also stated that Bank of America had been aware of the inaccuracies but failed to take timely corrective action. As a result, the CFPB imposed the $12 million fine to ensure that all financial institutions are acting in accordance with the law.
Market Price
On Tuesday, Bank of America experienced a small dip in stock prices, opening at $29.5 and closing at the same amount, down 0.1% from its previous closing price of 29.6. Bank of America has since been ordered to pay a civil money penalty and to make corrections to the HMDA data it previously submitted. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BAC. More…
| Total Revenues | Net Income | Net Margin |
| – | 28.93k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BAC. More…
| Operations | Investing | Financing |
| 43.26k | 43.18k | 57.67k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BAC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.15M | 2.87M | – |
Key Ratios Snapshot
Some of the financial key ratios for BAC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale has conducted an analysis of the fundamentals of BANK OF AMERICA. According to our Star Chart, BANK OF AMERICA is classified as a ‘cheetah’ – a type of company that has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. This means that BANK OF AMERICA has a high potential for returns, but also carries a certain level of risk. We believe that BANK OF AMERICA has a high health score of 10/10 considering its cashflows and debt. This indicates that the company is highly capable to sustain future operations in times of crisis. In terms of fundamentals, BANK OF AMERICA is strong in asset, dividend, and medium in growth and profitability. Given these factors, we predict that BANK OF AMERICA will be attractive to investors who are looking for higher rewards without taking on too much risk. As such, we anticipate that BANK OF AMERICA will be of interest to venture capitalists, growth investors, and value investors. More…
Peers
Bank of America Corp is one of the largest banks in the United States with over 5,000 branches. Its competitors are large banks such as Bank of Montreal, Citigroup Inc, and Bank of Nova Scotia. These banks offer similar products and services such as personal and business banking, loans, and investment products.
– Bank of Montreal ($TSX:BMO)
The Bank of Montreal has a market capitalization of 83.11 billion as of 2022. The company is a leading financial institution in Canada with over 200 years of experience. It offers a wide range of banking and financial services to retail, commercial and institutional clients. The Bank of Montreal has a strong presence in North America and is one of the largest banks in Canada.
– Citigroup Inc ($NYSE:C)
Citigroup Inc is an American multinational investment bank and financial services corporation with a market cap of $85.51 billion as of 2022. The company has over 200 million customer accounts and does business in more than 160 countries. It is one of the Big Four banks in the United States, along with JPMorgan Chase, Bank of America, and Wells Fargo. Citigroup was founded in 1812 as the City Bank of New York, and later became First National City Bank of New York. The company has its headquarters in New York City.
– Bank of Nova Scotia ($TSX:BNS)
Bank of Nova Scotia has a market cap of 79.27B as of 2022. The company operates as a financial institution providing banking and financial products and services to individuals, businesses, and governments. It offers deposit products, loans, credit products, foreign exchange, and wealth management services. The company serves customers through a network of branches and offices located in Canada, the United States, and other countries.
Summary
Bank of America (BofA) recently received a $12 million fine from the Consumer Financial Protection Bureau (CFPB) for submitting false mortgage data. For investors, this presents an important consideration when analyzing the bank’s stock performance. BofA has a wide range of products and services, including consumer banking, corporate banking, credit cards, wealth management, and investment banking. BofA is also considered a safe investment due to its relatively low risk profile.
However, investors should be aware of the company’s recent penalty from the CFPB and the potential impact it may have on future profits.
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