A former employee of Regions Bank in Birmingham, Ala., has been prohibited from future involvement with financial institutions for allegedly engaging in improper practices regarding credit origination, the Federal Reserve said Tuesday.
Ashley N. Burrus, a former financial services specialist for the bank, is prohibited from participating in in the conduct of the affairs of any federally insured financial institution or agency without the written approval of the Federal Reserve.
According to the consent agreement with the central bank, the Fed alleged that Burrus – while employed as a financial services specialist of the bank between Dec. 30, 2015 and Aug. 7, 2017 – improperly inflated at least 10 credit applicants’ reported income for stated income products, such as credit cards and personal loans, to qualify applicants for products which they would otherwise not qualify.
According to the Fed, Burrus received incentive compensation from the bank tied to her origination of customer credit extensions, including those with improperly inflated applicant income.
The Fed said that originating extensions of credit with improperly inflated applicant income constituted an unsafe or unsound banking practice, which resulted in false entries in the bank’s records.
Burrus has been terminated from her position at the bank, the Fed stated.
In other action, the Federal Reserve announced the termination of an enforcement action against Patterson Bankshares, Inc., of Patterson, Ga. The enforcement action dated to 2010.