CA Threatens Wells' Mortgage Lending License

The California Department of Corporations has issued a letter of intent to revoke the residential mortgage lending license of Wells Fargo Home Mortgage Inc., citing the lender's refusal to refund what the department alleges were excessive loan fees charged in violation of state law.Corporations Commissioner Demetrios A. Boutris said the department is taking the action because Wells "chose not to make the requested refunds to its mortgage customers" when confronted with the allegations, and instead "challenged California's authority in federal court." A Wells spokeswoman said the company is confident that its license and ability to provide mortgages in the state will not be affected by the legal challenge. "We want to reassure all our mortgage customers that it's business as usual," she said. "All mortgage interest payments that we charge customers are fully legal under federal law. … Courts have ruled time and again that federal law takes precedence over inconsistent state laws, and we're confident that precedent will continue in this case."