Wells Fargo Gets New $250 Million Fine
Wells Fargo has received a new $250 million fine related to issues stemming from the bank’s scandal and its practices from several years ago.
The fine from the Office of the Comptroller of the Currency (OCC) is for “unsafe or unsound practices” related to the bank’s home lending business. The OCC said that the civil money penalty, and a related cease-and-desist order, have been brought against the bank for failing to address compliance and risk issues raised in a 2018 order. It found that its efforts to pay back customers it had previously harmed, were not sufficient.
“Wells Fargo has not met the requirements of the OCC’s 2018 action against the bank. This is unacceptable,” said Acting Comptroller of the Currency Michael J. Hsu in the press release. “In addition to the $250 million civil money penalty that we are assessing against Wells Fargo, today’s action puts limits on the bank’s future activities until existing problems in mortgage servicing are adequately addressed. The OCC will continue to use all the tools at our disposal, including business restrictions, to ensure that national banks address problems in a timely manner, treat customers fairly, and operate in a safe and sound manner.”
The Cease and Desist order restricts the bank from acquiring certain third-party residential mortgage servicing and requires the bank to ensure that borrowers are not transferred out of the bank’s loan servicing portfolio until remediation is provided.
A 2016 CFPB consent order was brought against Wells Fargo after a customer-abuse scandal was revealed where the bank had opened millions of fraudulent accounts. The bank remains under other restrictions levied by federal regulators, including a 2018 asset cap imposed by the Federal Reserve.
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If you want more details on how crooked Wells Fargo was/is, watch the Netflix documentary Dirty Money. It’s insane what they did and how little they’ve been penalized to date.