UNITED NEWS INTERNATIONAL (UNI) — Federal regulators have slapped Wells Fargo with $1 billion in fines over home and auto loan abuses.
Specifically, Wells Fargo forced auto loan customers into unnecessary insurance and charged home loan customers unfair fees to lock in mortgage interest rates.
As a result, the bank has agreed to pay the Office of the Comptroller of the Currency $500 million.
Meanwhile, the Consumer Financial Protection Bureau will collect another $500 million under a separate consent order.
It adds up to the Trump administration’s largest sanction to date against a U.S. bank.
In an April 20 statement, Wells Fargo President and CEO Timothy Sloan said the bank is committed to strengthening its compliance and risk management.
He added, “Our customers deserve only the best from Wells Fargo.”
In light of the fines, meanwhile, Wells Fargo has reduced its first quarter net income by $800 million.