'Regulators Caught Wells Fargo, Other Banks In Probe Over Mortgage Pricing Discrimination' - CNBC
Portfolio Pulse from Benzinga Newsdesk
Wells Fargo is under scrutiny by the Consumer Financial Protection Bureau (CFPB) for potential mortgage pricing discrimination. The bank received a Matter Requiring Attention (MRA) notice regarding the use of pricing exceptions, which may have led to fewer discounts for Black and female borrowers. This practice could violate U.S. fair lending laws. Wells Fargo has a history of regulatory issues, including a $184 million settlement in 2012 for charging minorities higher fees and a $250 million fine in 2021 for mortgage business problems. The bank has since adjusted its policies, requiring documentation for competitive bids, and has refocused on serving existing customers and minority communities. The CFPB has increased fair lending probes, with 32 investigations last year, and several banks received MRAs, though they were not named.
December 11, 2023 | 3:04 pm
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Wells Fargo received an MRA from the CFPB over potential mortgage pricing discrimination, which could lead to regulatory action and fines. The bank's history of regulatory issues and recent adjustments to its mortgage policies may affect investor confidence.
The news of the CFPB's MRA to Wells Fargo for potential mortgage pricing discrimination is likely to negatively impact the bank's stock price in the short term. Given the bank's history of regulatory issues and the current focus on fair lending practices, investors may be concerned about potential fines and reputational damage. The bank's recent policy changes and refocus on serving minority communities may mitigate some concerns, but the overall sentiment is likely to be negative until more details emerge.
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IMPORTANCE 90
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