Lawsuit Accuses Wells Fargo Of Steering Blacks To Subprime Mortgages

New York Times:

As she describes it, Beth Jacobson and her fellow loan officers at Wells Fargo Bank "rode the stagecoach from hell" for a decade, systematically singling out blacks in Baltimore and suburban Maryland for high-interest subprime mortgages.

Read the whole story: New York Times

Comments

[OpposingViewpoint]

Wells Fargo was not the only bank pushing sub-prime loans on home buyers. In fact, banks were not the only institution pushing sub-prime loans. I bought a new home in January 2007 by paying cash after I sold two properties I had purchased years earlier. The real estate agency that listed the house I bought tried their level best to convince me to apply for an Option Arm mortgage loan at a specific bank that they "worked with all the time". I declined to apply for a mortgage loan and opted to pay cash for my house. Makes you understand just how corrupt this process really was. BTW, I am white.

[macchugsid]

This bank should be fined out of existence. I left them years ago and I tell everyone I know not to do business with them. I feel the same way about BoA. These companies are just thieves in suits.

I bank with a local bank and I have told them that the day they sell out is the day I move to another local bank. I have been with them for over 15 years and have never had a problem.

[Tim303]

Citibank did this in early 90s.

[Hdaryl01]

They ALL did it, do it, and will continue to do it. The social contract is broken. We're just waking up to this fact now. The only option I've found is to bank very local, where a semblance of conscience still exists, and you'll see the banker at the football, basketball, and baseball games. We're just numbers and risk factors for the big players to extra fees from to make quarterly and annual numbers, and facilitate the bonuses....

[AngieMom57]

I had my first car loan with Wells Fargo twenty five years ago, unpleasant experience, paid off the car with no late payments and told myself to avoid Wells Fargo like the plague.

My home loan got "sold" or "bundled" to Wells Fargo Home Mortgage three years ago, awful.

[Earl]

Anyone going to get a mortgage should spend ten bucks on a mortgage how-to book and read it. It will likely save you thousands.

[Waitaminute]

How many white people purchase a "how to book"? Now thats beside the point, isn't it?

[Sharon908]

More bad news from WELLS FARGO. The good news is that they purchased WACHOVIA. OPTION ARMS buried WACHOVIA, once these loans are out of government imposed moratoria, they will bury WELLS FARGO too. What goes around comes around... NEVER TOO BIG TO FAIL...your day is right around the corner WFC.

[Hdaryl01]

Amen.....if additional consumer fraud class action lawsuits don't bury them first. WFC made its Q1 2009 by charging all kinds of suspect fees................new ones....for 2008 AND 2009 in Q1.....

Anyone who still banks with Wells Fargo, or any of the too big too fail players is an idiot. YOU are helping to perpetuate the problem. If you continue to do so, please have the decency to keep your complaints about bail out, credit card reform, etc. to yourself. IF a small percentage of us simply refused to use these banks including Wells Fargo, they would die. And, we could get on with needed reform.

Funny thing, I fired Wells Fargo, Citibank, Chase, Bank of America, Merrill Lynch, and AIG. Now, I bank exclusively at a small local bank with 4 offices in 4 towns. The service is great! I don't get nickle and dimed with fees for fees upon fees subject to fees and penalties....

Think about it people. Take back your power. If Wells Fargo, or any other too big too fail bank acts contra to your values. Fire them. For principal. And, don't look back.

[kendraro]

This is a disgusting story of greed. As a white person I am dismayed to know that I had an advantage I was unaware of. This discrimination MUST be prosecuted to the highest degree. We can't let this two standards go on anymore - I don't want special privilege because of my skin color - I want everyone treated fairly.

[StacyGA]

Welcome to the real USA. Unfortunately (or fortunately- depending on how you look at it) You will always be treated with a higher level of respect and consideration in this country because of the color of your skin. It is a simple truth that African Americans and other minorities know all too well. Funny how just recently quite a few people like yourself, that I know, just now realized this. Amazing!

[mayfly0]

Ditto!

[macchugsid]

I have known this for years. Yes, I am a white male. I am glad more people like kendaro are beginning to realize it.

I would think that you would be glad to hear it also StacyGA. As for your comment about "you will always be treated with a higher level of respect and consideration" I personally go out of my way to treat people as they treat me. Let us all hope you are wrong with your analysis and work towards a day when you do not feel that way. After all, we do have an African-American President. That is a start is it not?

[Hdaryl01]

If this action is deplorable to you, then you MUST fire them, on PRINCIPAL. Continuing to do business with them only perpetuates the problem.........

[VictoriaP]

Unfortunately, people of color live this reality. Many whites are just coming to realize that racism is alive and well. This is economic terrorism directed toward a specific ethnic group.

[AntonBursch]

Tomorrow morning our software company is closing our Wells Fargo accounts. This is evil. I will be telling everyone I know to close their Wells Fargo accounts.

[Hdaryl01]

THANK YOU!!!!! I did the same months ago. MORE OF US NEED TO DO THIS!!!!! How can we possible expect them to change if we continue to do business with them, and support them? If you were Wells Fargo, would you change if not forced to? Money talks...............FIRE THEM!!!!!

[sc92705]

Wells Fargo is very hesitant to loan against the Obama "loan modification" program whatever color you are. I don't think this is a black/white issue. The issue is WF does not want to help people who need a slight leg up to get through this crisis. They would rather foreclose on whites, blacks, asians,
whatever. If you got lots of green WF does not care what color you are. Let's stay on track.

[VictoriaP]

this is about the loans originated over the past several years. the loan modification program is a joke, lip service, really.

[tyger]

My mortgage was sold to these idiots and in the first four months they did not send me a bill in hopes that I would miss a mortgage payment, then when I checked my bill they had put an insurance which I did not sign for on my account! These peple along with Washington mutual are the biggest crooks. I am very careful who I refinance my house with and so many of the companies are dishonest I did not refinance. Years ago before Bush took office I read an article how banks were ripping people off with equity loans. It stands to reason middle class homes would be next as that is what so many of us finance our lives with.

[Waitaminute]

Washington mutual sold my mortgage to wells fargo. The samething happened in my case.

[2garen]

Just watch this will be settled out of court with wf admitting no guilt. They will pay a pittance of a fine while peoples lives have been affected. How evil..

[Halsey]

This makes me very sad...I work for a company...recently saved from oblivion by being purchased (at rock bottom price)...by Wells Fargo... I'm not naive..but "hoped"..that is was mostly the CountryWides or Wachovia's, etc..that "targetted" susceptible loan applicants.... I wanted to believe that Wells was different.... my sunday morning is ruined.... this whole greed thing...it is a monster that serves no master...

[LeonBNJ]

There can be factors beyond skin color and ethicity as to those put into subprime loans. Many Black and Hispanic mortage holders may have them on older houses, in less stable urban neighborhoods with lousy schools and higher crime rates all affecting the long-term values of those properties and thus increasesed risk for mortgage lenders.
Still, as with the general mortage crises, the massive amounts of preverse incentives from bonuses to those that decide mortgages to their supervisors to the CEO's are a key factor as to the subprime push on non-whites seeking mortgages as well. It's too bad the government seize those bonuses, too me there was a pattern of criminality that shoud land them all of the worst involved to go to jail or be financially ruined too.

[Lorianne]

I agree. There are lots of 'flags' to loan officers, appraisers, etc. beyond skin color.

And it's not just banks.

In low income neighborhoods you see more pay-day loan stores (loans at astronomical interest rates, pawn shops, 4th-hand car dealerships, rental furniture stores (and astromical rates), abortion clinics, dollar stores (selling cheap junk that will fall apart) ... on and on.

Lots of people prey on the poor or people who they assume to be poor or people they assume to be less careful in financial matters.

This is also why scammers target older people and younger people (like college students).

If you show any sign of weakness or desperation or in a hurry, or look like someone they assume would be weak or desparate or in a hurry, someone IS going to jump at the chance to scam you.

Unfortunately, it's always been that way since time immemorial.
Buyer beware.

[BBC9nch]

Did you even bother to read the article? There are two Wells Fargo employees explaining in great detail that they specifically targeted blacks for these subprime loans. There are just some people who will deny the truth regardless of the evidence.

[smiththomas]

Once again its all about the big bad banks. Is there no limit. We are getting to the point where there is no personal responsibility. If people screw up it has to be someones fault so let's find someone to sue. Didnt Barney Frank encourage some of these lones? Does that make him subject to a law suit?
This is treating people like cattle. How can there really be equality when people are considered unable to make decisions. Banks will be reluctant to ever relax standards again for fear of being subject to suits. Government will end up giving them the loans, and when they default the taxpayer will be forced to come to the rescue. Its the no fault bail out voting block era.

[bbgeez03]

You're right wingnuts! Everyone is treated fairly and there is absolutely no need for affirmative action or any other protections for minorities.

MUD PEOPLE!! Nice.

[MJJM]

Stop laying in the SUN, your brain is getting fried!!