And $70 million is a drop in the bucket for Wells Fargo..
The Office of the Comptroller of the Currency on Wednesday finally lifted its mortgage servicing restrictions on Wells Fargo now that the bank is in compliance with the requirements of the Independent Foreclosure Review.
But Wells Fargo didn’t come out of this unscathed and must pay a $70 million civil money penalty for previous violations of the order, according to the OCC.
“We are pleased that the OCC has validated the effectiveness of the significant changes we have made to our mortgage servicing operations and confirmed our release from the Consent Order. Our team worked very hard to complete the requirements of the original Consent Order and the amendments, and continues to provide the best possible service to our customers,” Tom Goyda, a spokesperson for Wells Fargo said.
While the OCC said it originally issued orders in April 2011 and amended the orders in February 2013, it amended the orders again in June 2015.
The OCC revised Wells Fargo’s restrictions, along with JPMorgan Chase’s and four other banks that also had restrictions placed on them due to their failure to comply with requirements of the Independent Foreclosure Review.
At the time, Wells Fargo and HSBC were dealt the hardest blow by the OCC and were prohibited from:
- Acquiring of mortgage servicing rights until the consent order is terminated
- New contracts to perform mortgage servicing prohibited until the consent order is terminated
- New offshoring of mortgage servicing activity until the consent order is terminated
Click this chart for a more in-depth outline of the restrictions placed on each bank.