Baltimore alleges Wells Fargo targeted Black homeowners with Predatory Lending

From the East Bay Business Times [HERE]
by Rachel Sams of the Baltimore Business Journal

As the city of Baltimore and lending giant Wells Fargo battle over the issue of city foreclosures, the city filed detailed allegations in an effort to bolster its claims that Wells Fargo discriminates against blacks in its mortgage lending. In its motion filed Tuesday, the city claims San Francisco-based Wells Fargo uses predatory lending practices in Baltimore's black community "to make a quick profit because it believes it can successfully exploit those communities." The city made national news when it sued Wells Fargo & Co. (NYSE: WFC) in January, saying Wells' allegedly discriminatory policies contributed to a high rate of foreclosures in Baltimore's black community. Wells Fargo struck back in March, claiming that Baltimore's foreclosure problems were largely self-inflicted and stemmed from city sales of homes facing tax liens.

The city alleges that Wells Fargo's predatory lending practices in black neighborhoods include:

• Charging higher interest rates;
• Underwriting certain types of adjustable-rate mortgages without regard for whether the borrower can repay after the initial "teaser" rate expires;
• Stripping borrowers' equity through unnecessary refinancings;
• Paying rebates to mortgage brokers for inflating interest rates;
• Requiring prepayment penalties that prevent borrowers from getting help through refinancing;
• Charging excessive points and fees with no corresponding benefits to the borrower.
  

The city also took issue with Wells Fargo's claim in its motion to dismiss the suit that the city's tax sale policies contribute to its foreclosure problems. Tax sales are required by state law, according to the city's motion filed in Baltimore's federal court.

Wells Fargo claims there have been 19,000 tax lien foreclosure suits in the city since 2000, but the city says only about 2,300 of those lawsuits actually resulted in foreclosure. Many of those foreclosures stemmed from Baltimore's Project 5000 program, which does not displace homeowners but returns vacant homes to the tax rolls, the city claims.

Wells Fargo officials could not be reached for comment Wednesday.

The city's motion alleges that a Wells Fargo loan in a predominantly black neighborhood is nearly four times as likely to result in foreclosure as a company loan in a mostly white neighborhood. Majority-black neighborhoods in Baltimore that have suffered from Wells Fargo's policies include Belair-Edison, Sandtown-Winchester, Greater Govans and Waverly, the city claims.

Comments

[Don Darryl]

I worked as an Underwriter/ Auditor for Wells Fargo Home Mortgage:

They fired me three times in three separate states.

Illinois-Wrongful Terminations, ADA Violations, Civil Rights Violations, refused to honor request for COBRA continuation coverages.

Arizona- Discharged me in the basement of a funeral home while selecting my dads casket.

California- Dean Harvey demanded that I approved loans for borrowers who did not qualify.

My civil rights were violated by Wells Fargo Home Mortgage, I told Natasha Sears and Eileen Sotak at EEOC. They were kind enough to spend two years investigating my complaint; they found reasonable cause to believe my claims, ruled in my favor and issued a final determination.

During that investigation multiple civil rights violations were observed and noted by EEOC.


It is common and acceptable for Wells Fargo to discriminate and ignore the rights, privileges and entitlements afforded to minorities.

They then gave a severely disabled individual, who sought protective and corrective actions the burden of dealing with their negligent actions.

Eileen Sotak communicated recently that my file with them was destroyed, why would the government destroy evidence in a case investigating, and documenting racism, and discrimination?

It is common and acceptable for Wells Fargo to discriminate and ignore the rights, privileges and entitlements afforded to minorities.

Eileen Sotak confirmed a problem and then destroyed the evidence.

I believe Ms. Natasha Sears and Eileen Sotak should be required to execute affidavits regarding their findings.

Then came Hurricane Edith and Tropical Storm Tami causing devastating destruction including lies of stalking them, filing false police reports and false affidavits.

I advised the judge and he told me I was pushing the limit.

I believe that LA Superior Courts was negligent and violated my right to privacy and confidentiality and knowingly allowed Tami Ohana and Edith Stern to continue with the racism that was common over the years.

I requested corrective actions and remedies. I received no accommodations.

Edith and Tami screamed rape and now I am hanging from a tree.