Wells Fargo&co’s troubles don’t seem like they are coming to an end anytime soon. They are not only faced with a lawsuit against them by the city of Philadelphia but also have to deal with concerns that some of their bankers hold bogus accounts in the name of the customers.
The lawsuit filed on May 15 states that Wells Fargo had violated Fair Housing Act of 1968 by practicing predatory lending acts towards minority mortgage borrowers.They have however denied the claims and termed them as unsubstantiated Their practices are fair as far as they are concerned.
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The city of Philadelphia investigations on the matter took one year. They backdated the bank’s data for ten years and got evidence of the unfair treatment meted out to the minority clients. (the year 2004-2014) According to the city, Wells Fargo, a bank located in Francisco had directed black borrowers into riskier loans with higher interest rates regardless of being credit- qualified for lower risk, lower interest mortgages.
These investigations followed a series of closure because they could not afford to refinance the mortgages. The whites were not treated similarly and thus the charges.
These actions by Wells Fargo would result in blight in minority neighborhoods, the rise in some fore closures Homes in minority neighborhoods was 4.7 times likelier to be foreclosed than those in the white neighborhoods.
The accusers wanted for an unspecified amount of money for incurred damages and a court injunction against Wells Fargo to stop it from issuing mortgages unfairly in the future.
The city of Philadelphia is the fifth-largest in the US with a population of 1.5 million people. 43%of them are blacks and 125 of them Hispanic. The actions by Well Fargo resulted in many residents losing their homes to fore closure. The value of property went low, and there were increased criminal activities.
Karl Heideck is a contract attorney listed as a hire counsel in April 2015. Karl Heideck offers services like compliance, consulting, risk management, corporate law, Product liability, commercial litigations and employment proceedings.
Learn more about Karl Heideck: http://www.phillypurge.com/2017/05/24/karl-heideck-explains-lawsuit-philadelphia-against-wells-fargo/