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In the wake of broader regulatory pullback by the federal government, Wells Fargo announced this week that the Office of the Comptroller of the Currency (OCC) terminated a 2021 consent order over loss mitigation deficiencies in its home-lending business, which itself also stemmed from what the OCC said was a result of the bank violating the terms of a 2018 compliance consent order.
The bank made the announcement on Monday, saying it was the “eleventh consent order closed by Wells Fargo’s regulators since 2019.”
Wells Fargo CEO Charlie Scharf shared the company’s reaction to the news, saying the bank is “pleased” and that the action is a validation of the company’s work.
“This timeframe is much improved from other historical orders, including two 2011 Federal Reserve orders which were terminated earlier this year,” Scharf said in a statement. “This is our fifth closed consent order since the beginning of 2025. We remain confident that we will complete the work required in our remaining consent orders.”
In the original 2021 order, handed down early in the Biden administration, OCC said Wells Fargo charged customers mortgage interest rate lock extension fees despite failures of certain loans to proceed to closing. Additionally, the order accused the bank’s auto-lending unit of improperly maintaining insurance policies on auto loan accounts.
At the time, Scharf said that building out the company’s functions considering its size and complexity would “not follow a straight line.”
“We are managing multiple issues concurrently, and progress will come alongside setbacks,” Scharf said in 2021. “That said, we believe we’re making significant progress, the work required is clear, and I remain confident in our ability to complete it.”
The bank also saw a 2022 consent order from the Consumer Financial Protection Bureau (CFPB) lifted in late January, just days before former director Rohit Chopra was fired by the president.
