News Release 2016-61 | May 25, 2016
OCC Terminates Mortgage Servicing-Related Consent Order Against Wells Fargo Bank, Issues $70 Million Civil Money Penalty
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today terminated its mortgage servicing-related order against Wells Fargo Bank, N.A. (Wells Fargo), and assessed a $70 million civil money penalty against the bank for previous violations of the order.
The OCC terminated the consent order against the bank after determining that the institution now complies with the order. The OCC’s originally issued orders in April 2011 and amended the orders in February 2013 and June 2015. The termination of the orders ends business restrictions affecting Wells Fargo that the OCC mandated in June 2015.
The OCC also assessed a $70 million civil money penalty against the bank. The OCC found that Wells Fargo failed to correct deficiencies identified in the 2011 consent orders in a timely fashion. As a result, the OCC determined that Wells Fargo violated the 2011 consent order from October 1, 2014, through August 31, 2015. The OCC further found that, between December 1, 2011, and March 31, 2015, Wells Fargo filed payment change notices in bankruptcy courts that did not comply with bankruptcy rules and safe and sound banking practices. The OCC also found that, between March 2013 and October 2014, Wells Fargo made escrow calculation errors that in some cases led to incorrect loan modification denials and constituted unsafe or unsound banking practices.
Wells Fargo will pay the assessed penalty to the U.S. Treasury.