WASHINGTON–Wells Fargo has been hit with a $250-million fine by regulators for the lack of progress in addressing longstanding issues related to mortgage lending.
In announcing the fine, the Office of the Comptroller of the Currency said Wells Fargo has not taken action to fix problems identified in a 2018 order in which the bank was found to have harmed home lending customers. As part of that order, Wells Fargo was to offer restitution to customers and improve risk-and-compliance management practices.
“Wells Fargo has not met the requirements of the OCC’s 2018 action against the bank. This is unacceptable,” said Acting Comptroller of the Currency Michael J. Hsu in a statement.
Specifically, the OCC said Wells Fargo has failed to develop a program for customers to avoid losing their homes, such as through loan modifications. According to the OCC, errors caused by the bank harmed borrowers and in response the bank has been ordered to not just fix that program but improve its risk-management systems.
The OCC has also prohibited Wells Fargo from acquiring mortgage servicing from other lenders.
The OCC penalty is only the latest for Wells Fargo in the last five years, beginning with a huge scandal that involved the creation of millions of fake customer accounts five years ago.