City of Philadelphia Files Lawsuit Against Wells Fargo for Discriminatory Lending

High-cost mortgage loans

Lawsuit Alleges the Bank Targeted Minority Borrowers with High-Cost Loans

The City of Philadelphia has filed a federal lawsuit against Wells Fargo in the United States District Court for the Eastern District of Pennsylvania claiming that Wells Fargo has engaged in discriminatory lending practices that target minority borrowers. The Complaint alleges that commencing in 2004 and continuing through the present, Wells Fargo violated the federal Fair Housing Act (“FHA”) by steering African-American and Latino borrowers towards high-cost or high-risk loans even where those borrowers’ credit permitted them to obtain more advantageous loans. [Read more…]