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Wells Fargo fires about 60 employees in mortgage division


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Wells Fargo fires about 60 employees in mortgage division

Wells Fargo & Co. has fired about 60 employees in its mortgage division as part of its reshuffling efforts amid increased regulatory scrutiny, The Wall Street Journal reported Dec. 14, citing "people familiar with the matter."

Roughly 40 employees in a group tasked with inspecting mortgage quality and about 20 market lending managers have been fired in recent weeks, the publication reported. However, Wells Fargo Spokesman Tom Goyda said the company is working to hire more than 1,500 employees for mortgage-related roles in the U.S.

The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are investigating the company after about 110,000 customers were improperly charged for mortgage rate lock extensions, according to the WSJ. The company said about $98 million in mortgage rate lock extensions fees are being assessed to ensure they were appropriately charged.

The OCC reportedly sent a letter to Wells Fargo regarding its auto lending and mortgage practices and is considering an enforcement action. The company has responded and made its case against a consent order, the WSJ reported, citing"people familiar with the correspondence." A Wells Fargo spokesperson did not confirm to the news outlet that it sent or received the letters.

On Dec. 8, President Donald Trump said the government will pursue penalties against Wells Fargo's mortgage lending practices despite reports that CFPB's acting head, Mick Mulvaney may let the company off the hook.