President Trump says that Wells Fargo won’t escape penalties linked to alleged mortgage lending abuse, tweeting that the bank may face even higher fines.
The president’s tweet follows reports that the interim head of the Consumer Financial Protection Bureau, Mick Mulvaney, was reviewing whether or not the bank would have to pay tens of millions of dollars as part of previous settlement agreements, CNBC reported. One of the settlements was related to Wells Fargo charging borrowing fees to secure low mortgage rates, a practice that the bank admitted led to a “substantial number” of customers being charged inappropriately.
“Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has incorrectly been reported, but will be pursued and, if anything, substantially increased,” Trump tweeted. “I will cut Regs but make penalties severe when caught cheating!”
Mulvaney has vowed to make significant changes to the bureau. He’s also promised to study open cases under his predecessor, Richard Cordray. [CNBC] — Kathryn Brenzel