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OCC terminates 2021 loss mitigation consent order

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Wells Fargo ( WFC ) inches closer to ending decade-old regulatory

woes

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Fifth consent order closed since 2025 beginning

(Adds background in paragraph 3-7, analyst comment in paragraph

10)

March 17 (Reuters) - A top U.S. banking regulator

terminated a 2021 consent order against Wells Fargo ( WFC ) for

deficiencies in its home lending loss mitigation practices, the

Wall Street giant said on Monday, bringing it closer to ending

near-decade-old regulatory woes.

The move marks the fifth closed consent order - an

enforcement action involving a fine or specific directive to

address an issue - since the beginning of 2025, CEO Charlie

Scharf said in a statement.

The U.S. Office of the Comptroller of the Currency (OCC) in

2021 levied a $250 million fine related to the bank's home

lending loss mitigation program and for failing to meet the

requirements of a 2018 consent order.

Wells Fargo's ( WFC ) compliance issues came under the spotlight

after a fake accounts scandal that erupted in 2016.

Fixing compliance problems has been the top priority for

Wells Fargo ( WFC ) under Scharf's leadership, who became the bank's CEO

in 2019, leading to the closure of 11 consent orders since then.

The bank still has three open consent orders and is

operating under a $1.95 trillion asset cap imposed by the

Federal Reserve in 2018, preventing it from growing until

regulators deem the issue has been fixed.

Wells Fargo ( WFC ) shares were up 0.2% in extended trading.

SWIFTER RESOLUTION

Wells Fargo ( WFC ) has seen numerous regulators move to lift

enforcement actions in recent months. In January, the Consumer

Financial Protection Bureau closed a 2022 order over alleged

mishandling of auto loans and mortgages.

In February, the Federal Reserve ended two regulatory

punishments imposed on Wells Fargo ( WFC ) in 2011. Last month, the OCC

also terminated a 2018 order on the bank's compliance risk

management program.

"Another sign that Wells Fargo ( WFC ) continues its transition from

defense to offense, and it will likely reinforce investors'

belief that the asset cap could be lifted sooner rather than

later," Piper Sandler analysts said.

"We remain confident that we will complete the work required

in our remaining consent orders," Scharf said.