What are the main issues addressed in these OCC consent orders?

The consent orders primarily address Wells Fargo's loss mitigation activities, specifically concerning its practices related to mortgage loan modifications. They also highlight insufficient progress in addressing requirements previously mandated by an April 2018 OCC consent order.

What is the financial impact of these consent orders on Wells Fargo?

The most direct financial impact is the $250 million civil money penalty that Wells Fargo must pay to the OCC. Beyond this penalty, the company may incur additional costs related to implementing corrective actions to address the loss mitigation concerns.

Does this indicate a new regulatory problem for Wells Fargo?

These consent orders are related to ongoing regulatory scrutiny, particularly concerning issues stemming from an April 2018 consent order. While they represent continued oversight, they also show the company is working with the OCC to resolve these specific matters.

Where can I find more details about these consent orders?

The news release and copies of both consent orders are filed as Exhibits 99.1, 99.2, and 99.3 to this 8-K filing, and are incorporated by reference.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company (WFC) announced on September 9, 2021, that it has entered into two separate consent orders with the Office of the Comptroller of the Currency (OCC) related to its loss mitigation activities. These orders stem from concerns over the company's handling of mortgage loan modifications and a lack of sufficient progress in addressing previous regulatory requirements. One consent order addresses the company's loss mitigation activities directly, while the second order mandates a $250 million civil money penalty. This penalty is specifically tied to the company's loss mitigation practices and its failure to adequately implement directives from an April 2018 consent order. Investors should note that while these actions represent ongoing regulatory scrutiny, they also signify the company's engagement with regulators to resolve these issues.

Key Highlights

1Wells Fargo entered into a consent order with the OCC regarding loss mitigation activities.
2A separate consent order requires Wells Fargo to pay a $250 million civil money penalty.
3The penalty is related to loss mitigation activities and insufficient progress on prior OCC requirements.
4This action follows an April 2018 consent order with the OCC, indicating continued regulatory oversight.
5The company has filed a news release and copies of the consent orders as exhibits to the 8-K.
6These events are dated September 8, 2021, and were filed on September 9, 2021.

WELLS FARGO & COMPANY/MN 8-K Report, Corporate Update (Sep 9, 2021)

Summary

Key Highlights

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