The Federal Reserve took action against a former Dallas loan officer who allegedly falsified borrower data used to originate at least $1.7 million in mortgage loans for individuals, in violation of several financial laws and regulations.
According to a prohibition order issued by the Fed on Jan. 13, PrimeLending terminated Aquana Raffington, who worked as a loan officer for the bank from March 2022 to September 2022, for engaging in unsafe and unsound banking practices and for violating its prohibition against conflicts of interest.
Raffington allegedly knew that loan applications submitted by individuals employed by a business owned by her and a relative contained certain fraudulent asset, income and employment statements meant to skew approval odds in the borrowers’ favor, according to the order.
In addition to knowing about the misrepresented application data and failing to report or otherwise prevent the fraud, Raffington earned commission for originating the fraudulent loans.
“Raffington’s conduct constituted violations of law or regulation, unsafe or unsound banking practices, and breaches of fiduciary duty, and involved her personal dishonesty and her willful and continuing disregard for the safety and soundness of PrimeLending,” according to the order.
For violating multiple provisions of the Federal Deposit Insurance Act and other applicable laws, Raffington will be prohibited from engaging in future affairs of “any insured depository institution or any holding company of an insured depository institution, or any subsidiary of such holding company, or any foreign bank or company to which subsection (a) of 12 U.S.C. § 3106 applies and any subsidiary of such foreign bank or company.”
Any violation of the order would separately subject her to appropriate civil or criminal penalties as defined by law.