Here are five things to know about the proposed fines.
1. The CFPB and the Office of the Comptroller of the Currency, Wells Fargo’s regulator, are readying sanctions against the country’s third-largest lender based on reports Wells Fargo provided drivers extra insurance and got commission on the policies. The CFPB and OCC are also investigating allegations Wells Fargo wrongfully levied mortgage borrower fees.
2. CFPB head Mick Mulvaney, a President Donald Trump appointee, is seeking a penalty to settle both claims. Mr. Mulvaney’s projected $1 billion fine far surpasses a $100 million fine CFPB slapped on Wells Fargo in September 2016. That fine settled the lender’s fake accounts scandal, according to the sources. The $100 million figure had been CFPB’s highest fine ever.
3. While settlement terms aren’t finalized, if Mr. Mulvaney issues the fine, it will be his first at the helm of the country’s top watchdog agency for consumer finances. It would also fulfill Mr. Trump’s promise to clamp down on Wells Fargo.
4. Wells Fargo and OCC declined Reuters‘ request for comment. CFPB did not respond to the publication’s request for comment.
5. Two separate congressional hearings on April 11 and April 12 will give lawmakers space to question Mr. Mulvaney’s settlement talks. Wells Fargo is set to release its earnings April 13, with some officials wanting a deal by then, according to the report.
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