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. 

 

 

What's New?The latest

Amber Heard donates $7 million settlement to charity

Amber Heard donates $7 million settlement to charity

Amber Heard’s divorce ordeal might have been painful for Johnny Depp and Amber but it was the complete opposite for two charity organizations that will receive the settlement money. The two organizations that she is sending the donations to are the American Civil Liberties Union, to aid in the…

CONTINUE READING

Are there pitfalls to online banking?

Are there pitfalls to online banking?

With easy access to the internet, anyone can have access to a multitude of things – we can get quick advice or more information of things, buy and sell things online, limitless choice of entertainment and even banking services, all at the tip of your fingers! It is all cyberspace, after all,…

CONTINUE READING

How to become a millionaire?

How to become a millionaire?

We all want to be rich some of us do not aspire to be a millionaire, but simply rich enough so they can live comfortably. And on the other hand you have those whose only goal in life is to become a millionaire, which is okay in case you don’t have any other dreams or aspirations. So if you…

CONTINUE READING