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News Release: 03-06

GRAY DAVIS, Governor
Date: 05/02/03

DEMETRIOS A. BOUTRIS, Commissioner

Department of Corporations Revokes Wells Fargo's Mortgage Lending License

Administrative Law Judge's Proposed Rulings Calling for Revocation Are Adopted

 

Sacramento, May 2, 2003 — The Department of Corporations announced that the California residential mortgage and finance lender licenses of Wells Fargo Home Mortgage have been revoked.

"California consumers had a legitimate expectation that Wells Fargo would obey the same laws as their competitors and limit themselves to the same charges," said California Corporations Commissioner Demetrios A. Boutris. "Instead, among other breaches, Wells Fargo charged consumers interest on their mortgages more than a day prior to the deed being recorded, an admitted violation of California law. If Wells Fargo is not going to abide by California's laws, it has no right to California's licenses. Wells Fargo Home Mortgages mortgage licenses are hereby revoked."

A state hearing on the Wells matter was recently concluded, while federal proceedings are ongoing. Administrative Law Judge Jaime Roman issued proposed rulings calling for the revocation of Wells Fargo's California Finance Lenders License and California Residential Mortgage Lending License. On May 5, Wells Fargo and the Department of Corporations will be in federal court to determine whether the Department or the federal Office of the Comptroller of the Currency (OCC) has jurisdiction over Wells Fargo Home Mortgage.

Pending resolution of the federal case, Wells Fargo has the authority to sell mortgages under federal law and complaints should be directed to the federal regulator. In order to facilitate consumer refunds with a minimum of delay, the Department has forwarded the OCC consumer complaints received by the Department regarding mortgage overcharges by Wells Fargo. Consumers who feel that they have been improperly overcharged by Wells Fargo should contact the OCC at 800-613-6743.

The Department of Corporations is California's Investment and Financing Authority, reporting to the Business, Transportation and Housing Agency and the Governor. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, see the Department's Web site at www.corp.ca.gov or call 1-866-ASK-CORP (1-866-275-2677).

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  • Click here to view the Revocation Order issued for the California residential mortgage license.
  • Click here to view the Revocation Order issued for the California finance lender license.