Regulators caught Wells Fargo, other banks in probe over mortgage pricing discrimination

In May of 2018, the Consumer Financial Protection Bureau (CFPB) issued a consent order to Wells Fargo, U.S. Bank, and Fifth Third Bank, following a probe into allegations that the banks were engaging in mortgage pricing discrimination. The CFPB alleged that the banks were charging higher prices to minority customers than to White customers who posed a similar risk level. In addition to entering into the consent order, Wells Fargo and U.S. Bank agreed to a combined total of $24 million in restitution to affected borrowers. This consent order required the banks to take the necessary steps to monitor and evaluate their pricing practices to ensure that they are in compliance with applicable laws. This order is part of the CFPB’s ongoing effort to expand access to fair and equal mortgage lending practices.