Wells Fargo Imposes Another Fine, But Also Says CFPB Order Removed From 2016 Selling Practices

Wells Fargo Imposes Another Fine, But Also Says CFPB Order Removed From 2016 Selling Practices

Charles Scharf

Kilai Shen | Bloomberg | Getty Images

Wells Fargo was fined $ 250 million by a banking regulator on Thursday after failing to properly execute a mortgage loss mitigation program.

The Office of the Comptroller of the Currency said the bank had engaged in “unsafe or unhealthy practices” associated with the loan modification program.

Acting Comptroller of the Currency Michael J. “Wells Fargo did not meet the requirements of the 2018 OCC action against the bank. This is unacceptable, ”Suu said in a statement. “In addition to the $ 250 million civil fine we are assessing against Wells Fargo, today’s action places limits on the bank’s future activities until existing problems with mortgage loan management are adequately resolved. “

In a statement, Wells Fargo acknowledged the regulatory action by the OCC and said that a separate issue from 2016, the Consumer Financial Protection Bureau’s consent order, had expired. The bank’s shares rose 1.6% on the news.

Wells Fargo CEO Charlie Scharf said, “Building an appropriate control and risk infrastructure has been and remains Wells Fargo’s top priority. “OCC’s actions today indicate the work we must continue to do to address critical and long-standing gaps. “

Scharf said the termination of the CFPB consent order is “representative of the progress we are making” in addressing many of the bank’s regulatory issues.

“We have done enough to ensure that the behavior at the heart of the consent order – which was reprehensible and utterly inconsistent with the values ​​this business was built on – will not happen again,” Scharf said. noted.

This story is developing. Please check for updates.

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