The Office of the Comptroller of the Currency (OCC) issued a $250 million civil penalty against Wells Fargo Bank, NA for flaws in the bank’s home loan loss mitigation program. In addition, the OCC issued a cease-and-desist consent order requiring Wells Fargo to make significant improvements to its loss mitigation program.
As a result of this consent order, Wells Fargo is restricted from acquiring certain third-party residential mortgage servicing and ensuring that borrowers are not transferred out of the bank’s loan servicing portfolio until remediation is provided, with few exceptions.
