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.