Introduction: A Landmark Moment for Wells Fargo

In a significant turn of events for Wells Fargo, the bank has recently made headlines by having another consent order lifted by the Office of the Comptroller of the Currency (OCC). This recent development is particularly noteworthy as it marks the fifth regulatory action that Wells Fargo has managed to clear in 2025, narrowing the pending consent orders to just three. This includes the critical asset cap that has been in place by the Federal Reserve since 2018.

But what does this mean for Wells Fargo, its clients, and the broader mortgage industry? Let’s delve into the background and implications of this development.

Understanding the Terminated Consent Order

The consent order that was recently resolved originated in 2021, at a time when Wells Fargo was charged with a $250 million civil money penalty due to “unsafe or unsound practices” specifically related to its home lending loss mitigation operations. These practices were fundamental for managing clients facing delinquent mortgage payments, requiring substantial enhancements before any further acquisitions could proceed. The scenario was further compounded by prior issues dating back to 2018, aimed at similar regulatory improvements.

As the bank moves past these regulatory challenges, it reflects a broader move within the financial services industry towards stricter compliance and enhanced consumer protections.

Transition from Compliance Trouble to Progress

In a span of just six years, regulators have terminated a total of 11 consent orders against Wells Fargo. This symbolizes a broader effort by the bank to restore its tarnished reputation after a series of consumer operation scandals. Among the order terminations, Wells Fargo has also managed to clear significant actions by the Federal Reserve and the Consumer Financial Protection Bureau (CFPB), demonstrating a comprehensive turnaround in its regulatory stance.