Wells Fargo Stock In Focus As Regulator Lifts 2021 Mortgage Lending Consent Order, Retail Turns Bullish

Wells Fargo (WFC) stock edged higher in after-hours trading on Monday after the bank confirmed that the U.S. Office of the Comptroller of the Currency (OCC) had terminated its 2021 consent order related to loss mitigation practices in the company’s home lending business.

The banking regulator had imposed a $250 million penalty on the lender for failing to pay back customers who were charged excessive or improper fees.

“This is our fifth closed consent order since the beginning of 2025. We remain confident that we will complete the work required in our remaining consent orders,” CEO Charlie Scharf said.

Since taking charge about six years ago, Scharf has prioritized fixing compliance issues. Wells Fargo’s regulators have closed 11 consent orders since 2019.

Wells Fargo also decided to trim down its home lending business in 2022, partly due to regulatory issues.

Last week, RBC analysts upgraded the stock following a recent selloff, as per TheFly. The RBC analyst also indicated that Wells Fargo could hit a higher valuation once it lifts its asset cap and achieves a 15% return on average common equity.

The bank still has three open consent orders. The Federal Reserve in 2018 imposed a $1.95 trillion asset cap on the bank due to its problems with compliance.

Retail sentiment on Stocktwits stayed in the ‘bullish’ (57/100) territory, while retail chatter remained ‘normal.’

Some bullish traders were pleased that another consent order was lifted.

Wells Fargo stock has gained marginally year-to-date (YTD).

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