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Wells Fargo targeted minorities with predatory lending -- lawsuit

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Mortgage Professional America | 29 May 2014, 10:18 AM Agree 0
A judge has nixed Wells Fargo's motion to throw out a lawsuit accusing the bank of engaging in predatory lending practices targeting minorities.
  • Dominick F Sammarone | | 29 May 2014, 10:38 AM Agree 0
    Not a good time to be in the mortgage business…
  • 35yearmortgagerep | | 29 May 2014, 10:56 AM Agree 0
    These financial institutions are in a no win situation with these types of lawsuits. As the article points out - If they don't make a mortgage to a minority then they are discriminating against the borrower and then if they do make a mortgage to a minority borrower and the borrower doesn't pay as agreed, they are then sued for making a mortgage to a minority who couldn't afford to pay the mortgage. I was personally working for Wells when ACORN was storming our branch offices, going through the office intimidating the office staff and demanding Wells make mortgages in the minority community.
  • Elena N. | | 29 May 2014, 11:09 AM Agree 0
    Congress has put and is still putting the pressure on the Banks to lend to minority borrowers using the Community Reinvestment Act.
    This is a no win for banks as they are being assaulted by all angles of our city, state, and federal govt.
  • Don | | 29 May 2014, 11:17 AM Agree 0
    I'm not a fan of the BIG banks, however this is a no win-win situation. If you don't lend to minorities, its discrimination. If you lend and minorities lose their jobs or work hours are cut due to a down-turn of the economy its the lenders fault they cannot pay their mortgages -
    The loons truly are running the show.
  • steve | | 29 May 2014, 11:35 AM Agree 0
    L.A. is nothing but minorities there is no majority of race. Lending is based on things like credit and income nothing else. You need to quit printing these stupid stories or at least headline them properly like "Bankrupt city ties to shake down one of the few remaining businesses to pay for useless city employees"
  • 30yearmortgagerep/John Deleva | | 29 May 2014, 11:58 AM Agree 0
    A classic case of damned if you do and damned if you don't. Our choice as a nation if we should ever be granted the choice again will be one between two imperfect realities balanced by the market place and not Washington. A free market place with government protection aimed only at the most egregious of unfair practice with a reliance on early consumer education and the correct theory that markets not government drives good behavior. Or government so big, so intrusive that the true engines of a nation's prosperity (free markets) are idled to a point where innovation, productivity, service, growth and results don't matter.

    We will have corruption, theft, unfair and harmful practices no matter who (government or free market) controls the delivery of services and products-human nature ensures this. Government is truly only good at a handful of enterprises and the US Constitution brilliantly defines them.

    The Government can't truly lift the least of us and it is true that too many private interests don't consider the least of us. With this said I favor less government for I know too much will harm far more than those that will be helped. A rising tide does not lift all boats despite the often used quote to the contrary but a heavy government hand will leave many more at that bottom. One need only look at what has been happening to the middleclass in this country in relationship to the alarming growth of our government.
  • GARY | | 29 May 2014, 12:52 PM Agree 0
    Although WELLS HAS NEVER BEEN A FAVORITE, THEY ARE UNFAIRLY BEING TARGETED .Recently heard that WELLS and Everbank will not buy paper that was rescored and rejecting broker paper. They should not have any say. Truly a violation of several laws
  • Martin | | 29 May 2014, 04:13 PM Agree 0
    Ridiculous.
  • Northern California Appraiser | | 29 May 2014, 04:25 PM Agree 0
    2 many of your readers miss the point. There is a difference between making mortgages to minorities & targeting minorities for predatory mortgages. It is not a "no-win" situation for the lenders. Many minority borrowers could have qualified for conventional financing on more reasonable terms, but they were steered into crappy mortgages that made more money in junk fees for the lenders. Many of these folks were unsophisticated first time buyers & did not realize they could have gotten a better deal with a more reputable lender. Unfortunately, your article did not go into sufficient detail to really get the point across.
  • Northern California Appraiser | | 29 May 2014, 04:26 PM Agree 0
    2 many of your readers miss the point. There is a difference between making mortgages to minorities & targeting minorities for predatory mortgages. It is not a "no-win" situation for the lenders. Many minority borrowers could have qualified for conventional financing on more reasonable terms, but they were steered into crappy mortgages that made more money in junk fees for the lenders. Many of these folks were unsophisticated first time buyers & did not realize they could have gotten a better deal with a more reputable lender. Unfortunately, your article did not go into sufficient detail to really get the point across.
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