Wells Fargo to pay $175M in mortgage lending discrimination settlement
MINNEAPOLIS (KMSP) -
The U.S. Department of Justice says Wells Fargo will pay at least $175 million to settle allegations of mortgage lending discrimination.
Wells Fargo allegedly violated fair lending laws by engaging in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers from 2004 through 2009.
At a news conference Thursday, Deputy Attorney General James Cole said Wells Fargo's discriminatory lending practices resulted in more than 34,000 African-American and Hispanic borrowers in 36 states and the District of Columbia paying higher rates for loans solely because of the color of their skin.
Cole said the federal government will ensure borrowers victimized by the housing crisis will have an opportunity to access home ownership.