Wells Fargo & Co. has agreed to pay $70 million to the U.S. Treasury as a civil penalty for mortgage servicing violations.
The Office of the Comptroller of the Currency (OCC) also terminated its mortgage servicing-related order against Wells Fargo after determining the bank is in compliance with the order. The termination lifts the June 2015 OCC imposed business restrictions, which includes providing or offering remediation to borrowers who received an incorrect loan modification denial.
The original orders date to 2011, October 1, 2014, through August 31, 2015, after the OCC found Wells Fargo filed payment change notices in bankruptcy courts that did not comply with bankruptcy rules and safe and sound banking practices. The OCC also found that, between March 2013 and October 2014, Wells Fargo made escrow calculation errors that in some cases led to incorrect loan modification denials and constituted unsafe or unsound banking practices.Wells-Frago-70-Million-consent-order