A lawsuit has been filed against Wells Fargo Company in Philadelphia city. The bank is alleged of Fair Housing Act 1968 violation by use of predatory lending that affects mortgage borrowers. The company has denied the allegations claiming that the initiative is fair. The bank has a string of problems. Interesting to note, it’s not yet cleared from last year’s scandal.The bank is accused by the city of steering Hispanic and black borrowers into high-risk loans whose rates are high although they had qualified for low risk and low-interest mortgages. Also, it was accused of making refinancing of the mortgages difficult for the borrowers which forced them to foreclose, unlike fellow white borrowers. Investigations proved that it was twice as likely for black borrowers to get high loan interests, unlike white borrowers. Hispanics could receive risky mortgage loans by 1.7 likelihood. The bank has rendered discriminatory lending for ten years. The city wants the bank to cater for the damages it has caused through its vice.
- S Census 2010 shows that with a total of 1.57 million people in Philadelphia, 43 percent are black and 12 percent are Hispanic. The bank’s vice affected the city as crime and vandalism increased and the property lost value in the affected regions. The bank had created a fake customer’s account for bankers to meet its sales goal and it’s suing had been ruled for another scandal.Redlining is a vice by banks that they don’t wish to give loans to certain neighbourhoods. Redlining as a result of racial or ethnic discrimination is illegal but legal for those who don’t meet required standards. The bank claimed that the allegations are unsubstantiated stating that in its 140 years history of service, it has practiced fair lending.
About Karl Heideck
Karl Heideck is a graduate of Temple University Beasley School of Law with Doctor Honors. He graduated from Swarthmore College with Bachelor of Arts and Literature. Karl Heideck focuses on compliance, risk management, and civil litigation in his legal practices.Karl Heideck is currently an Attorney at Grant and Eisenhower PA law firm. His focus is on fraud cases securities and complex banking litigation.
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