Friday, July 13, 2012
Wells Fargo, the nations largest mortgage lender, has agreed to pay $175 million to settle accusations that it pushed black and latino borrowers into high costs loans and then charged them excessive fees. From the Washington Post:
[The Justice Department's] centered on Wells Fargo mortgages made between 2004 and 2009 by independent brokers. It found that highly qualified black borrowers were four times as likely to receive a subprime loan as similarly qualified white applicants. Hispanic borrowers were three times as likely to get a subprime loan. Those mortgages carried higher interest rates and unfavorable terms that often resulted in borrowers falling behind on payments or losing their homes altogether.