WELLS FARGO WINS ROUND IN DISPUTE PRELIMINARY INJUNCTION ISSUED IN MORTGAGE CASE.Byline: Gregory J. Wilcox Staff Writer Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. & Co. has won a round in a dispute with state regulators over how it conducts its mortgage business in California. San Francisco-based Wells Fargo said a federal court late Monday issued a preliminary injunction A temporary order made by a court at the request of one party that prevents the other party from pursuing a particular course of conduct until the conclusion of a trial on the merits. A preliminary injunction is regarded as extraordinary relief. that prevents the California Department of Corporations from interfering with the bank's Wells Fargo Home Mortgage subsidiary business. The state says the company refuses to refund fees improperly levied against its California customers and notified Wells it intends to revoke To annul or make void by recalling or taking back; to cancel, rescind, repeal, or reverse. revoke v. to annul or cancel an act, particularly a statement, document, or promise, as if it no longer existed. its license unless amends are made. But federal Judge Garland E. Burell Jr. of the U.S. District Court for the Eastern District of California ruled that the company is likely to prevail in its position that the federal Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. has exclusive regulatory jurisdiction over subsidiaries of national banks. That status is all that Wells Fargo needs to conduct mortgage lending activities in California. ``We are very satisfied with the federal court's ruling, which supports our position and our federal regulator's position that federal law supersedes state law when it comes to jurisdiction over national banks and their operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. ,'' Richard Kovacevich Richard "Dick" Kovacevich is the Chairman of Wells Fargo. A native of Tacoma, Washington, he was born on October 30, 1943. A graduate of Stanford Business School, Kovacevich worked for General Mills before joining Citicorp. , Wells Fargo chairman and chief executive officer, said in a statement. Therefore, the company planned to voluntarily surrender its California license during a hearing before an administrative law judge administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. in Sacramento on Tuesday, said company spokeswoman Janis Smith. That's not the end of the matter, though, because the state refused to accept Wells Fargo's surrender terms and plans to proceed with the revocation The recall of some power or authority that has been granted. Revocation by the act of a party is intentional and voluntary, such as when a person cancels a Power of Attorney that he has given or a will that he has written. action, said corporations department spokesman Andre Pineda. And he notes that the federal court ruling is preliminary. ``This judge isn't finished with this case yet,'' he said. ``Both of us got something.'' Regulators say Wells Fargo started the interest clock too soon, overcharging some borrowers about $150 in interest. And in some cases, the company initially underestimated fees associated with obtaining a home loan by $600. The company then refused to conduct an audit and make refunds. Thus the state wants to revoke Wells Fargo's license even though the action would not prevent the company from operating in California. But it should give consumers some peace of mind, Pineda said. ``If a consumer goes to a lender that has a department ... license, they will know they are going to pay interest on their loan no earlier than the day before the house is actually theirs. If they go to Wells, they won't know that,''he said. When the state initially took action, Wells Fargo said its mortgage practices are legal under federal law. |
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