SEC Looking Into Wells Fargo Communications – NMP Skip to main content

SEC Looking Into Wells Fargo Communications

Feb 22, 2023
Wells Fargo Bank
Head of Multimedia

Regulators have been cracking down on retention of employee messages

Wells Fargo is once again under investigation by federal regulators. 

This time, the U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission are looking into Wells Fargo’s “compliance with records retention requirements relating to business communications sent over unapproved electronic messaging channels,” the company disclosed Tuesday in an SEC filing. 

The company did not elaborate. The SEC has been cracking down on publicly traded companies’ retention of electronic messages between employees. 

In September, the agency announced settlements with 15 firms totaling $1.1 billion for “widespread and longstanding failure” to maintain and preserve these communications. 

The list of offenders included Bank of America Securities Inc., Citigroup Global Markets Inc., and Goldman Sachs & Co. LLC. 

Wells Fargo also disclosed in Tuesday’s filing that it remains “involved in a number of judicial, regulatory, governmental, arbitration and other proceedings or investigations concerning matters arising from the conduct of its business activities, and many of those proceedings and investigations expose the Company to potential financial loss or other adverse consequences.” 

In December, the nation’s fourth largest bank by assets agreed to pay the Consumer Financial Protection Bureau $3.7 billion to settle a complaint over a wide range of practices. 

The CFPB said at the time that Wells Fargo had engaged in a “rinse-repeat cycle of violating the law,” including improperly denying thousands of applications for mortgage loan modifications. 

Wells Fargo did score a partial victory last month, when a federal judge in North Carolina dismissed parts of a discrimination lawsuit

The judge did allow the case, which alleges Wells Fargo relied on a biased appraisal as part of a refinance application, to move forward, but dismissed claims the bank conspired with the appraiser to commit any wrongdoing. 

About the author
Head of Multimedia
Mike Savino was Head of Multimedia at NMP.
Published
Feb 22, 2023
CFPB Weighs Changes To TRID Timing And Mortgage Rescission Rules

The bureau is seeking feedback on whether federal disclosure requirements raise costs, delay closings or limit access to mortgage credit

CFPB Issues AI Underwriting Guidance On Adverse Action Notices

The agency says proprietary and machine-learning models do not relieve lenders of their fair lending and disclosure responsibilities

VantageScore Says 4.0 Model Could Unlock $1 Trillion In Mortgage Originations

New study says VantageScore 4.0 scores five million more creditworthy borrowers than FICO Score 10T, expanding lending opportunities as the industry prepares for the GSE credit score transition

MISMO Updates Mortgage Insurance Standards To Support FICO 10T, VantageScore 4.0

New implementation guide standardizes mortgage insurance data exchange, helping lenders, insurers and technology providers prepare systems for newer credit scoring models

Congress Weighs New Roadmap To End Fannie, Freddie Conservatorship

Rep. Scott Fitzgerald's three-bill housing package would establish a statutory framework for releasing the GSEs while expanding construction lending and easing some TRID compliance requirements

CHLA Backs Bank Capital Proposal, Questions Impact On Mortgage Lending

Trade group supports lower mortgage risk weights but says broader market forces — not capital rules — drove banks' retreat from the market