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Lawsuit accuses Wells Fargo of biased lending in Chicago area
Source: Reuters
Lawsuit accuses Wells Fargo of biased lending in Chicago area
BY JONATHAN STEMPEL
Fri Nov 28, 2014 7:44pm EST
(Reuters) - Wells Fargo & Co was sued on Friday by Cook County, Illinois, which accused the largest U.S. mortgage lender of targeting black, Hispanic and female borrowers with predatory and discriminatory lending in the Chicago area.
The lawsuit is the latest accusing major banks of biased mortgage lending that harmed major American cities, such as Los Angeles, Miami and Baltimore, and prolonged the nation's housing crisis. These lawsuits have had mixed success.
According to a complaint filed in the U.S. District Court in Chicago, which is part of Cook County and the third-most populous U.S. city, Wells Fargo has for more than a decade discriminated against minority and female borrowers in the region, with a goal of maximizing profit.
The 152-page complaint said the bank targeted borrowers from the time loans were made through foreclosure through "equity stripping," which includes the imposition of inflated or unnecessary rates and fees, as well as penalties to refinance.
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BY JONATHAN STEMPEL
Fri Nov 28, 2014 7:44pm EST
(Reuters) - Wells Fargo & Co was sued on Friday by Cook County, Illinois, which accused the largest U.S. mortgage lender of targeting black, Hispanic and female borrowers with predatory and discriminatory lending in the Chicago area.
The lawsuit is the latest accusing major banks of biased mortgage lending that harmed major American cities, such as Los Angeles, Miami and Baltimore, and prolonged the nation's housing crisis. These lawsuits have had mixed success.
According to a complaint filed in the U.S. District Court in Chicago, which is part of Cook County and the third-most populous U.S. city, Wells Fargo has for more than a decade discriminated against minority and female borrowers in the region, with a goal of maximizing profit.
The 152-page complaint said the bank targeted borrowers from the time loans were made through foreclosure through "equity stripping," which includes the imposition of inflated or unnecessary rates and fees, as well as penalties to refinance.
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Read more: http://www.reuters.com/article/2014/11/29/us-wellsfargo-chicago-lawsuit-idUSKCN0JC24020141129
2 replies
= new reply since forum marked as read
= new reply since forum marked as read
it's been going on FOREVER!
