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Wells Fargo in $175M discriminatory lending settlement
July 12th, 2012
02:00 PM ET

Wells Fargo in $175M discriminatory lending settlement

By James O'Toole @CNNMoney

NEW YORK (CNNMoney) - Wells Fargo has agreed to pay $175 million to settle allegations that it discriminated against minority borrowers, the Department of Justice announced Thursday.

The DOJ accused Wells Fargo, the nation's largest residential home mortgage originator, of pushing African-American and Hispanic borrowers into more costly subprime loans or charging them higher fees than comparable white borrowers. More than 30,000 minority borrowers between 2004 and 2009 were affected, the Justice Department said.

"If you were African-American or Latino, you were more likely to be placed in a subprime loan or pay more for your mortgage loan, even though you were qualified and deserved better treatment," Assistant Attorney General Thomas Perez said in prepared remarks Thursday.

"This is a case about real people - African-American and Latino - who suffered real harm as a result of Wells Fargo's discriminatory lending practices."

In 2007, for example, a typical African-American wholesale borrower in Chicago seeking a $300,000 loan from Wells Fargo paid nearly $3,000 more in fees than a similarly qualified white applicant, the Justice Department said.

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soundoff (One Response)
  1. Lazaros C. Dallas

    I went into a Wells Fargo bank in Fort Lee, N.J. I picked up a pamphlet and on the back was a small symbol of a house with the caption EQUAL HOUSING LENDER. I thought since bank paid money to avoid a trial that now Wells Fargo is an UNEQUAL HOUSING LENDER. I do not understand why people would deposit their money with a bank who discriminates.I thought all lenders had to knife by ethics in order to operate. I will not bank with felons who Target my fellow Americans.it just is not American. Wells Fargo must be shut down and who ever has dirty mortgage should get their property free and clear. Our elected leaders are powerless to punish their owners. I am not a politician and I don't have give my money to banks that take over money launderers like Wachovia.

    July 26, 2012 at 11:09 am | Report abuse |