Wells Gets Prelim Order Against CA

Wells Fargo & Co., San Francisco, has received a preliminary injunction barring the commissioner of the California Department of Corporations from taking action against its mortgage lending subsidiary.Commissioner Demetrios A. Boutris had threatened to suspend Wells Fargo Home Mortgage's license in a dispute between the lender and the state. Prior to the threat, Wells Fargo filed a suit in the U.S. District Court for the Eastern District of California in Sacramento seeking to stop the department from forcing it to make refunds to borrowers over two alleged violations of state law. According to a statement from Wells Fargo, the federal court ruled that the company was likely to prevail in its argument that subsidiaries of a national bank are subject to exclusive regulatory jurisdiction by the Office of the Comptroller of the Currency. "Because the court has ruled that Wells Fargo is likely to prevail on its claim that state licenses are not necessary to conduct our business in California, we will voluntarily surrender licenses issued by the California Department of Corporations," said Pete Wissinger, chief executive of Des Moines, Iowa-based WFHM. "I also want to assure our customers and business partners that we will continue to comply with all state and federal laws that apply to our business."