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.