U.S. fines Wells Fargo $70 million over mortgage practices

The sign outside the Wells Fargo & Co. bank in downtown Denver

The U.S. Comptroller of the Currency fined Wells Fargo Bank (WFC.N) $70 million on Wednesday over mortgage servicing but said it was ending business restrictions it had placed on the bank.

According to the regulator, Wells Fargo made escrow calculation errors between March 2013 and October 2014 that in some cases led to incorrect loan modification denials and “constituted unsafe or unsound banking practices.”

The bank also failed to correct deficiencies in a timely fashion and filed payment change notices in bankruptcy courts that did not comply with bankruptcy rules, the comptroller’s office also found.

The regulator had imposed consent orders on the bank in April 2011 and amended them in 2013 and June 2015. It said Wells Fargo had now fallen in line with the orders, and it was lifting restrictions on its business.

(Reporting by Lisa Lambert; Editing by Lisa Von Ahn)

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