True Stories: Hybrid, eNote and RON Implementation

Join expert panelists that will discuss the status of federal legislation, trends in digital adoption and how best to prepare your organization for the next generation of lending processes.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

UWM has a plan to win a war of mortgage attrition

UWM's margins will fall all the way down to 75 to 110 bps. Mat Ishbia says it's the perfect environment to prove that his mortgage firm is truly elite.

Don’t sleep on non-QM products

Now is the perfect time for originators to consider expanding to non-QM products – to grow business, diversify their offerings and to ensure an opportunity to better serve their customers.

Politics & Money

OCC settles with three former Wells Fargo executives

One executive received a lifetime ban from working in the banking industry

The Office of the Comptroller of the Currency said on Monday it had settled with three former Wells Fargo executives for their roles in the bank’s fake-account scandal.

The settlements include a $925,000 penalty to former Community Bank Group Finance Officer Matthew Raphaelson, a $400,000 fine to the former Head of Community Bank Deposit Products Group Kenneth Zimmerman; and a $350,000 penalty to the former Head of Community Bank Human Resources Tracy Kidd, the OCC said in a statement.

“As part of the settlements, each individual agreed to cooperate with the OCC in any investigation, litigation, or administrative proceeding related to sales practices misconduct at the bank,” the statement said.

In addition to the fines, Raphaelson agreed to a so-called “prohibition order” that bans him from working in banking again, and the other two executives agreed to a “personal cease and desist order” that prohibits certain behaviors, the OCC said.

In January, the OCC announced it settled with John Stumpf, the former Wells Fargo chairman and CEO, who agreed to a $17.5 million fine and a lifetime prohibition from working in the banking industry. Hope Hardison, the Wells Fargo former chief administrative officer and director of human resources, agreed to a “cease and desist” as well as a $2.25 million fine, and Michael Loughlin, the former chief risk officer for Wells Fargo also got a “cease and desist” order from the OCC and a $1.25 million fine.

Wells Fargo has weathered a series of scandals that began with the 2016 revelation that while Stump was CEO, branch employees opened millions of fake accounts to hit sales goals.

Stump’s mantra to employees was “eight is great,” meaning he wanted employees to cross-sell customers so they were using eight of the bank’s products. After employees began opening fraudulent accounts to meet the sales goals, the credit ratings of some customers took a hit.

In February, Wells Fargo agreed to a $3 billion settlement of criminal and civil charges that it signed customers up for credit cards they didn’t request, opened accounts in their names without permission, and even transferred money between accounts.


Recommended reading: In addition to enforcing the rules for depository institutions, the OCC has also been busy determining the future of fintech regulation. FinLedger covers the OCC’s federal charter initiative and how a lawsuit from the New York State Department of Financial Services may derail progress toward a national OCC fintech charter. More on FinLedger.


Leave a comment

Most Popular Articles

How appraisers value homes in a hot housing market

How do appraisers value a home in a market where prices are escalating rapidly – and where nearly two-thirds of listed homes faced bidding wars in March? HW+ Premium Content

May 13, 2021 By

Latest Articles

Foreclosures down in April as moratorium continues

RealtyTrac and ATTOM Data Solutions found the number of properties with foreclosure filings in April are down 1% month over month and 17% year over year.

May 14, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please