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Old 08-02-2009, 03:37 AM
 
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The Illinois state attorney general files a lawsuit alleging that the bank sold the more costly mortgages more often to blacks and Latinos as compared with whites with similar incomes.

Accusing Wells Fargo & Co. of discriminating against minority borrowers by steering them into subprime mortgages, Illinois' attorney general sued the San Francisco bank, asking a state court to negate the loans and to fine Wells, the nation's largest home lender.

Wells Fargo disputed the allegations in the suit, which contends that the bank provided incentives to employees to steer borrowers into high-cost subprime home loans. It says African Americans and Latinos were sold these loans more frequently than white borrowers with similar incomes, who generally received lower-cost prime mortgages.

Wells Fargo accused of bias on subprime loans - Los Angeles Times
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Old 08-02-2009, 03:39 AM
 
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In Baltimore,
Wells Fargo loan officers guided minorities toward high-rate mortgages and joked that they were "riding the stagecoach to hell" for routinely steering prime-loan-qualified customers toward subprime loans, according to sworn declarations by two former employees, filed in federal court this week.

The affidavits were offered as evidence in a lawsuit filed on behalf of Baltimore last year and amended Monday, alleging "tens of millions" of dollars in losses from racist, predatory lending, known as "reverse redlining"- the targeting of minority borrowers, regardless of credit history, for unfavorable subprime loans. The city says the practice led to increased foreclosures, vacant properties and crime in black communities.
Ex-employees claim racism in Wells Fargo subprime loan push - baltimoresun.com

and
“We just went right after them,” said Ms. Jacobson, who is white and said she was once the bank’s top-producing subprime loan officer nationally. “Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”
Bank Accused of Pushing Mortgage Deals on Blacks
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