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 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.
- 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.