The Office of the Comptroller of the Currency announced on Wednesday that it has terminated the mortgage servicing-related consent order against Wells Fargo. At the same time, the OCC issued a civil money penalty of 70 million dollars to the bank for previous violations of the order. The consent order against Wells Fargo was terminated by the OCC after it was determined that the bank is now in compliance with the order.
Wells Fargo was one of 12 mortgage servicers penalized by the OCC and the Office of Thrift Supervision in April 2011 for deficient mortgage servicing and foreclosure practices. The consent orders handed down against the servicers at that time were based on findings by an examiner during an interagency review of major mortgage servicers conducted in 2010, at the height of the foreclosure crisis. Wednesday’s announcement involves the termination of consent orders the OCC placed on the bank after amending the order in June 2015.
The House Financial Services and General Government Appropriations Subcommittee approved by a voice vote its Fiscal Year 2017 Financial Services Bill, which proposes three major changes to the Bureau. The bill proposes to bring the CFPB’s funding under the Congressional appropriations process, replace the Bureau’s director with a five-member bipartisan commission, and require the Bureau to study the use of pre-dispute arbitration prior to issuing regulations.