Wells Fargo settles with feds for $1 billion over mortgage, auto loan actions

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The federal Bureau of Consumer Financial Protection announced a settlement with Wells Fargo Bank, N.A. in an action with the Office of the Comptroller of the Currency.

The bureau found that Wells Fargo violated the Consumer Financial Protection Act (CFPA) in the way it administered a mandatory insurance program related for auto loans.

The bureau also found that Wells Fargo violated regulations in how it charged certain borrowers for mortgage interest rate-lock extensions.

Under the terms of the consent orders, Wells Fargo will compensate harmed consumers and undertake certain activities related to its risk management and compliance management.

The Bureau assessed a $1 billion penalty against the bank and credited the $500 million penalty collected by the OCC toward the satisfaction of its fine.

“I am especially pleased that we were able to work closely and effectively with our colleagues at the OCC, and I appreciate the key role they played in the negotiations,” said Bureau Acting Director Mick Mulvaney. “As to the terms of the settlement: we have said all along that we will enforce the law. That is what we did here.”

It was the first acton enforcement action from Mulvaney, whose appointment as the interim director had drawn fire from Democrats and consumer activists.

The Bureau’s Wells Fargo consent order is available at:https://files.consumerfinance.gov/f/documents/cfpb_wells-fargo-bank-na_consent-order_2018-04.pdf

The OCC’s Wells Fargo consent order is available at:https://www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-41.html

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