Wells Fargo is said to be in settlement talks with the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) over mortgage lending and auto insurance abuses.
Reuters reported that the CFPB acting Director Mick Mulvaney is pushing for fines as large as $1 billion.
The CFPB and the OCC have been investigating Wells Fargo for wrongly levying fees on mortgage borrowers.
The two agencies are rumored to be ready to sanction the bank for layering extra insurance on drivers and collecting commissions on those policies.
The LA Times reported:
“Accusations of improper mortgage fees also have been the subject of a class-action lawsuit, and the bank reported in August that the consumer bureau was investigating the matter. Wells Fargo has acknowledged that the controversy was a factor in a shakeup of the bank’s mortgage division.
In October, Wells Fargo announced that it would refund “rate-lock extension” fees to some mortgage borrowers whose delays in completing mortgage applications were primarily the bank’s fault. The fees in question were charged from Sept. 16, 2013, through Feb. 28, 2017.
The fees are supposed to be charged only when borrowers fail to finish their paperwork on time and want to retain the interest rate that initially was quoted for the loan.”
Wells Fargo had previously paid a $100 million penalty to the CFPB in order to settle the infamous fake account scandal involving 3.5 million accounts for bank clients without their knowledge.
President Donal Trump had pledged tough penalties for Wells Fargo in December 2017:
Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has incorrectly been reported, but will be pursued and, if anything, substantially increased. I will cut Regs but make penalties severe when caught cheating!
— Donald J. Trump (@realDonaldTrump) December 8, 2017