“Wells Fargo has not met the requirements of the OCC’s 2018 action against the bank,” said Acting Comptroller of the Currency Michael J. Hsu. “This is unacceptable.”
In addition to the penalty, the action puts limits on the bank’s future activities until existing problems in mortgage servicing are adequately addressed, Hsu said.
The OCC also issued a cease and desist order against the Wells Fargo based on the its failure to establish an effective home lending loss mitigation program. The bank’s efforts to identify and pay back customers who had been previously harmed by it were insufficient, the OCC said.
The order requires the bank to take corrective actions to improve the execution, risk management, and oversight of the bank’s loss mitigation program. It restricts the bank from acquiring certain third-party residential mortgage servicing and requires the bank to ensure that borrowers aren’t transferred out of the bank’s loan servicing portfolio until remediation is provided.