CFPB, OCC Wells Fargo $1bn Fine

On Apr. 20, CFPB, OCC fined Wells Fargo $1bn for unsafe lending.

  • The bank charged certain borrowers for mortgage interest rate-lock extensions.
  • Use of unsafe and unsound practices on collateral protection insurance policies.
  • Both regulators highlighted collaborative approach is now being taken by CFPB.


  • $1bn fine for breach of auto-loan administration, and mortgage practices rules.
  • Under terms of consent orders, Wells Fargo will remediate harmed consumers.
  • OCC assessed $500mn fine, ordered restitution for unsafe or unsound practices.
  • Develop, implement effective bank-wide compliance risk management program.

OCC Statement

  • OCC said took the action given severity of the deficiencies and violations of law.
  • For harm to consumers, and failure to timely correct deficiencies and violations.
  • Found deficiencies in its enterprise-wide compliance risk management program.
  • Constituted reckless, unsafe or unsound practice. and unfair practice in FTC act.
  • Improperly placed and maintained protection insurance policies, for auto loans.
  • Imposed improper level of fees associated with extensions of interest rate locks.

Severance payments

  • Modified restrictions imposed in Nov. 2016, on approval of severance payments
    to employees, and appointment of senior executive officers or board members.
  • Original restrictions applied to all staff, not only those responsible for violation.
  • Restrictions still need approval re senior executive officers and on appointment.