By Dean Seal

The Federal Reserve has closed two 2011 consent orders against Wells Fargo related to the financial service company's previous loan servicing, foreclosure processing and mortgage lending practices.

The Fed's Board of Governors said Tuesday it has terminated the actions. One pertained to deficient practices in Wells Fargo's residential mortgage loan servicing and foreclosure processing. The other was related to the mortgage lending practices of a former subsidiary, Wells Fargo Financial.

The closures have no impact on the Fed's 2018 consent order that required the bank to overhaul its governance and risk management processes and imposed a $2 trillion asset cap on the bank.

Wells Fargo confirmed the terminations and said regulators have now closed nine consent orders since 2019.

Last week, the Consumer Financial Protection Bureau terminated its 2022 consent order against the bank. The agency had accused Wells Fargo of improperly denying mortgage loan modifications, miscalculating fees, unfairly freezing customer accounts and charging unfair overdraft fees. The order called for Wells Fargo to pay more than $2 billion in consumer redress and a $1.7 billion fine.

Chief Executive Charlie Scharf said the Fed's terminations and the CFPB's similar move last week show the company is making progress in resolving its historical matters.

"Wells Fargo is a different company today, and the resolution of these two longstanding Federal Reserve consent orders is another indication that our team is establishing the right processes and controls to meet our regulators' and our own expectations," he said.

"We remain confident in our ability to complete the work required in our remaining consent orders."

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 04, 2025 12:26 ET (17:26 GMT)

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