Wells Fargo to Pay $1B for Mortgage, Auto Lending Abuses

(From CNBC)

Wells Fargo agreed to pay $1 billion to settle allegations from multiple regulators it engaged in lending abuses in its auto insurance and home loan businesses.

The settlement, announced Friday with the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, has been widely anticipated. Last week, Wells reported a profit of $5.9 billion for the first quarter but said that number could change if it has to restate earnings once the settlement is reached.

Wells said Friday the settlement would cut $800 million off its first-quarter profit, taking it to $4.7 billion, or 96 cents a share. Shares of Wells rose 1.5 percent in early trading.

The CFPB said Friday the violations were connected to how Wells Fargo administered a mandatory insurance program in its auto loan business and how it charged certain borrowers for mortgage interest rate lock products.

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