California state officials on Friday revoked Wells Fargo's ( WFC) state mortgage license amid a dispute over whether Wells should be subject to regulation by state or federal banking officials.

California contends that Wells is in violation of state rules covering the charging of mortgage interest and other fees. Federal bank regulators, meanwhile, have sided with Wells, and the matter will soon be brought before a federal judge. The state officials appear to have revoked Wells' state license in order to strengthen their position prior to the court hearing.

Officials at the nation's fifth-largest bank, if they were worried by the move, didn't show it. "We want to be clear it makes no difference to our customers whether we have or don't have California mortgage licenses because we are a subsidiary of a national bank operating under a charter issued by the federal government, not by state government," said Pete Wissinger, chief executive of Wells Fargo Home Mortgage division, in a company press release.

California state officials acknowledged in their press release that the action may not mean much to Wells' ability to continue to issue mortgages in the Golden State. "Pending resolution of the federal case, Wells Fargo has the authority to sell mortgages under federal law, and complaints should be directed to the federal regulator," said the state Department of Corporations in a press release.

Shares of Wells were up 27 cents at $48.65 in afternoon trading.

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