WatchWells Fargo agreed to pay $125 million to minority borrowers who were "adversely impacted" by discriminatory lending practices. In addition, the company will pay $50 million for community improvement programs in Baltimore.
Also, the company will no longer accept loan applications from mortgage brokers. This effectively cuts off a major funding source for mortgage brokers.
>>> Wells Fargo & Company (NYSE:WFC) announced today a definitive settlement agreement between Wells FargoBank, N.A. and the U.S. Department of Justice (DOJ) that resolves the DOJ’s previously disclosed claims that someWells Fargo mortgages may have had a disparate impact on some African-American and Hispanic borrowers. The DOJ claims are based on a statistical survey of Wells Fargo Home Mortgage loans between 2004 and 2009, and the claims primarily relate to mortgages priced and sold to consumers by independent mortgage brokers. WhileWells Fargo denies the claims, the company has agreed to pay $125 million to borrowers that the DOJ believes were adversely impacted by mortgages priced and sold by independent mortgage brokers through its Wholesale channel.
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>>>While not part of the DOJ settlement, Wells Fargo, on its own volition, also announced today that on July 13 it will discontinue funding mortgages that are originated, priced and sold by independent mortgage brokers through its mortgage Wholesale channel. Mortgages sold by independent brokers in this manner currently represent five percent of the Company’s home mortgage funded volume. Mortgage brokers operate as independent businesses and are not employed by Wells Fargo. Therefore, Wells Fargo cannot set loan prices for independent mortgage brokers nor control the combined effect of the negotiations that thousands of these independent mortgage brokers conduct with their customers. After July 13, 2012, the Company will no longer accept new applications for loans originated by independent mortgage brokers through its Wholesale channel, but will work to ensure existing applications are processed and closed.
https://www.wellsfargo.com/press/2012/20120712_WellsFargoAnnouncesSettlment
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Los Angeles, CA
If you dont lend $ to a minority you get sued for discrimination.
If you DO lend $ to a minority you get sued for predatory lending.
choose one.
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I cant recall any mandatory line, on any of my loan papers for my loan, that asked for race.
But
There are home loans offered by the city and county that you can only get if you are a particular minority.