Skip to main content

Wells Fargo Expecting Federal Fines to Reach $1B

Phil Hall
Apr 13, 2018
Wells Fargo is preparing itself for fines as high as $1 billion from a pair of federal regulators

 
Wells Fargo is preparing itself for fines as high as $1 billion from a pair of federal regulators.
 
The San Francisco-based financial institution announced this news today in its first quarter financial results, noting that its results may need to be recalculated when the penalties are enacted.
 
“Wells Fargo & Company reported preliminary results, including net income of $5.9 billion, or $1.12 per diluted common share, for first quarter 2018, compared with $5.6 billion, or $1.03 per share, for first quarter 2017, and $6.2 billion, or $1.16 per share, for fourth quarter 2017,” the company said in its financial statement. “These preliminary results are subject to change due to our ongoing discussions with the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) to resolve matters regarding our compliance risk management program and our past practices involving certain automobile collateral protection insurance policies and certain mortgage interest rate lock extensions (the “CFPB/OCC matter”), which the CFPB and OCC have collectively offered to resolve for an aggregate of $1 billion in civil money penalties. At this time, we are unable to predict final resolution of the CFPB/OCC matter and cannot reasonably estimate our related loss contingency.” 
 
“I’m confident that our outstanding team will continue to transform Wells Fargo into a better, stronger company; however, we recognize that it will take time to put all of our challenges behind us,” said Wells Fargo CEO Tim Sloan in a statement.
 
Neither the CFPB nor the OCC publicly commented on this statement. This would be the first penalty enforcement levied by the CFPB since Mick Mulvaney took over the agency as its Acting Director, and is the latest problematic publicity for Wells Fargo. Earlier this week, the American Federation of Teachers (AFT), one of the nation’s most powerful labor unions, threatened to drop its participation in Wells Fargo’s mortgage program unless the lender severs its ties with the National Rifle Association (NRA).
 
 

 
Published
Apr 13, 2018
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021
CFPB Finds Evidence Of Redlining And Deceptive Acts In 2020

Enforcement actions resulted in more than $124 million in consumer remediation and civil money penalties in 2020

Regulation and Compliance
Jun 29, 2021