The CFPB fined Wells Fargo hundreds of millions more for fraud within their Mortgage Division. The division wrongfully charged customers fees to extend their promised interest rates when it was the bank’s fault their paperwork was delayed.
Wells Fargo claimed to have notified over 110,000 customers charged with “mortgage rate lock extension fees” totalling almost $100 million that they may be improperly charged.
An employee who was fired after reporting a scheme at the bank to falsify records so it could blame mortgage-processing delays (and therefore collect additional fees) on borrowers filed a wrongful-termination lawsuit. Many other wrongful termination lawsuits have been filed by former whistle-blowers at the bank.