Wells Fargo fined for $70 million for mortgage malpractice

Wells Fargo fined for $70 million for mortgage malpractice

The U.S. Comptroller of the Currency fined Wells Fargo on Wednesday due to some malpractice in mortgage services. Between March 2013 and October 2014, according to the regulator, Wells Fargo made some escrow calculation errors. These errors, in some cases, led to incorrect denial modifications.

The regulating entity considered that all this “constituted unsafe or unsound banking practices". Besides this, the bank was also charged with not making haste on fixing deficiencies pointed in several documents about improper activities. These activities included robo-signing of foreclosure documents. The agency also found some other recent problems such as the faulty payment-change notices filed in bankruptcy courts. All of these issues came to happen right after the 2008 economic crisis.

The bank, based in San Francisco, agreed to pay the million dollar fine. This puts an end to the 5-year fight of the bank precisely over legal claims about foreclosure missteps since the 2008 crisis.

Even though the bank did not admit to nor deny any wrongdoing in the OCC, according to a statement from the bank, they are pleased that the regulating agency accepted its work on the settlement.

In 2011, Wells Fargo and most other institutions that offered mortgage services, agreed on resolving allegations of fraudulent activity in the endorsement of legal papers and mishandling in loan papers. One year ago, since Wells Fargo and other five institutions specialized in mortgage servicing failed to clear up these allegations, the OCC restricted them blocking them from buying mortgage-service rights. One of these companies, JPMorgan Chase & Co settled in an agreement and paid $48 million in January 2016.

Further settlements took place in February this year.  This left only Wells Fargo and HSBC Holding Plc still on the OCC’s restrictive list. 



Featured Posts

Ottawa Wants To Invite Chinese Students, Tourists and Workers to Canada

Canada is soon set to receive up to twice the number of the Chinese tourists, students, workers, and travelers. Currently, there are a paltry five visa offices in China, but the number is set to triple over the next couple of months. These centers will be located in Chengdu, Nanjing, Wuhan, Jinan,…

Chinese Development Bank Approves First Loans

The outcome of Britain’s referendum that was held last week is expected to have an impact on the world economy in the coming days. Nonetheless, Asian Infrastructure Investment Bank, a Chinese based development bank, started to offer loans to clients on June 24th. The management team stated…

New Jersey Family Wins $429.6 Powerball

The Powerball has just made a 70-year-old woman, Perlie Smith, $429.6 million richer. On May 13, 2016, Ms. Smith was identified as the Powerball jackpot winner. She has seven children, of whom Valerie Arthur is the eldest. Arthur just retired as a prison administrator for the Department of…

Saudi Arabia wants to buy more US refineries

Saudi Arabia is one of the most controversial, but richest countries on the planet. The country developed quickly immediately after discovering oil. Now they are providing fuel for many countries. The producers in Saudi Arabia also want to expand their business by buying more US refineries. Why now?…

What is a mutual fund?

When it comes to your money, it is very important to be informed. You have to know exactly how to manage your funds and how you can use your money to increase your income. It is very tempting to risk everything you have and hope for the best, but it is really not a good idea? What is the best way to…

What is a reverse mortgage?

Homeowners who are 62 or older can access money based on the value of their mortgage-free home. It is another word for a loan but it doesn’t have to be repaid until you sell your home or move. A reverse mortgage means that you receive a certain amount of money that you can use to help your…