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NAACP Sponsor Wells Fargo Pays $175 Million for Stealing from Black People

Wells Fargo settles for $175 million in lending discrimination case

One of the nations’s largest mortgage lending companies has settled charges in a racial discrimination case.

Wells Fargo will pay $175 million to settle accusations that the mortgage company violated fair-lending laws by allegedly steering black and Hispanic borrowers into subprime mortgages.This is the country’s second largest residential discrimination settlement to date.

The settlement will provide $125 million in compensation for borrowers who were allegedly steered into subprime mortgages or who paid higher fees and rates than white borrowers because of their race. The other $50 million will serve as down payment assistance to borrowers in U.S. communities where significant amounts of discrimination has taken place.

“An applicant’s creditworthiness, and not the color of his or her skin, should determine what loans a borrower qualifies for,” Deputy Attorney General James Cole said.Though they’ve settled, Wells Fargo denies the claims. The lender still agreed, however to compensate those the government believes were adversely impacted by mortgages priced and sold by independent mortgage brokers through its wholesale channel.

“Wells Fargo takes pride in serving the home ownership needs of all of our customers, and we are fully committed to fair and responsible lending,” Mike Heid, president of Wells Fargo Home Mortgage said in a statement.

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6 Responses to NAACP Sponsor Wells Fargo Pays $175 Million for Stealing from Black People

  1. Gwendolyn Reply

    July 13, 2012 at 1:13 pm

    LIES, AND MORE LIES, IF THEY WEREN’T GUILTY OF THIS, WHY PAY, AND THE GOVERNMENT ISN’T GOING TO GO AFTER YOUR ASS UNLESS YOU DID SOMETHING TO MAKE THEM COME AFTER YOU. THIS SERVES THEM RIGHT, THEY SHOULD DO SOME JAIL TIME TOO. LOCK SOME OF THOSE SUITS IN THERE WITH THE SOME OF THE HOME BOYS, AND THEY’LL SEE JUST HOW MUCH THEY’RE NOT BETTER THEN ANYONE BLACK OR HISPANIC, I’D LOVE TO BE A FLY ON THE WALL AND WATCH THAT SHIT PLAY ITSELF OUT !!!!!

  2. Eugene Davis Reply

    July 14, 2012 at 12:14 am

    How do I apply for compensation from Wells Fargo?
    Wells Fargo carried my mortgage for years. Please
    forward info to my email address. Thank you.

  3. Giles Ferrell Reply

    July 14, 2012 at 12:29 am

    As a borrower from wells Fargo I would like to know if I am entitled to compensation from this law suit. If anyone have any info please pass it on..

  4. etreman Reply

    July 14, 2012 at 2:56 am

    This is probably a slap on the wrist. They’ll pay it out of their ‘in case we get caught fund’. Remember, all their doings are profit driven. If they’re paying that much you can bet they’ve made a helluva lot more or they wouldnt’ve taken the risk.

  5. Erica Reply

    July 14, 2012 at 1:29 pm

    Are we going to be sent a check or will it be taken off our loans???

  6. Barbara Reply

    July 14, 2012 at 5:40 pm

    @Erica It seems to me I heard this story before, where those discriminated against were to receive appoximately $2-3 THOUSAND dollars. I guess lawyers will get the actual millions.

    When I heard the story before, I was asking myself: “Where are all those million of dollars going if on $2-3 Thousand is paid to complaintants?”

    Thank God I didn’t get my mortgage from them.

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