Draper & Kramer will be prohibited from residential mortgage lending activities for five years, though the CFPB noted that Draper & Kramer wound down its operations last year.
The regulator said in an amicus brief Wednesday that home equity investments can be considered credit and subject to Truth in Lending Act requirements.
“We’re still not at the level of profitability where we should be in home lending, just given as we continue to wind down that servicing book,” said Charlie Scharf, CEO of Wells.