Federal officials looking into charges Wells Fargo discriminated against African-American borrowers
Wednesday, July 27, 2011
Huffington Post: “The Department of Justice is preparing a lawsuit against Wells Fargo, the nation’s largest home mortgage lender, for allegedly preying upon African American borrowers during the housing bubble and steering them into high-cost subprime loans,” according to Shahien Nasiripour. The story, attributed to “three people with direct knowledge of the probe,” says the bank is negotiating with hopes of avoiding a public lawsuit. Last week Wells Fargo agreed to pay $85 million (without admitting wrongdoing) to settle charges by the Federal Reserve it had inappropriately steered African-American borrowers into subprime mortgage loans and falsified borrowers’ loan documents.