Federal Reserve Bans Former Bank Lending Chief Over Altered Appraisals on July 9

According to the Federal Reserve, former Heritage State Bank Chief Lending Officer James Burns was prohibited from working in the U.S. banking industry effective July 9, 2026. The regulator found that Burns caused the bank to approve at least four loans in 2016 using altered property appraisals showing inflated values compared to originals submitted by appraisers. Additionally, Burns failed to ensure that at least 25 loan approvals and renewals were supported by appraisals completed by licensed professionals in the relevant states. The Federal Reserve determined Burns' conduct involved personal dishonesty and unsafe banking practices. Burns consented to the order without admitting or denying allegations and must cooperate with any current or future Federal Reserve enforcement actions.
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