Wells Fargo to provide $7.5 million to end Memphis, Shelby County lawsuit
Source: Memphis Commercial-Appeal
Mortgage giant Wells Fargo will pay $7.5 million to end a lending discrimination lawsuit filed by Memphis and Shelby County, more than half the money going to down payment and home renovation assistance, according to the company.
Individuals who want to buy homes in Memphis or Shelby County could qualify for grants up to $15,000 each under a Wells Fargo home ownership program that is set to launch this year. A total of $4.5 million in settlement funds are set aside for this use.
To qualify, prospective buyers must have a family income below 120 percent of the area median income and must complete an eight-hour homebuyer education session with an approved non-profit. Prospective buyers must agree to live in the home for five years.
The balance of the settlement - $3 million - will go into a city and county program aimed at reviving neighborhoods pummeled by the recession, public safety initiatives and programs increasing financial literacy. The San Francisco-based company will also make $425 million available to local borrowers over five years, roughly the same amount the bank normally lends, according to company filings. But of that amount, the settlement designates $125 million for “low- and moderate-income borrowers.” In return, the city and county will dismiss a lawsuit claiming Wells Fargo discriminated in its lending practices.
Read more: http://www.commercialappeal.com/news/2012/may/29/wells-fargo-memphis-shelby-county-reach-400-millio/
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