Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. HOMEPAGE

Wells Fargo to pay $1 billion in fines for mortgage and auto lending abuses

Wells Fargo
Wells Fargo Brendan McDermid/Reuters

  • Wells Fargo will split a $1 billion fine between the Office of the Comptroller of the Currency and the US Consumer Financial Protection Bureau as a penalty to resolve probes into auto insurance and mortgage lending abuses.
  • The CFPB has been readying sanctions alongside the OCC, Wells Fargo's day-to-day regulator.
Advertisement

Wells Fargo is being fined $1 billion as a penalty to resolve probes into auto insurance and lending abuses. 

The third-largest US bank will split the fine equally between the Office of the Comptroller of the Currency and the US Consumer Financial Protection Bureau.

Last week, both agencies proposed Wells Fargo pay the penalty. 

It's the first fine to be paid to the CFPB since Mick Mulvaney took over as acting director in late November.  

Advertisement

The CFPB had been readying sanctions alongside the OCC, Wells Fargo's day-to-day regulator.

The bank, still smarting from a prolonged sales scandal in its retail banking business, found inconsistencies at its auto lending and mortgage in the summer of 2017, leading to further probes by regulators.

To appease investors and regulators, the bank overhauled its operational structure, shook up its board and hired a new compliance officer.

Reuters reporting by Patrick Rucker in Washington and Mekhla Raina in Bengaluru; Editing by Arun Koyyur

Wells Fargo
Advertisement
Close icon Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

Jump to

  1. Main content
  2. Search
  3. Account