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

[Deaninphilly]

The loan officers who according to the article are both white and black are just now testifying to this? Why didn't they come out with this information before these people lost their homes? Oh, because they were making upwards of $700K +.

I have no doubt this happened, but these people who did this should not get off just because they are now testifying.

Also what the banks do is increase or decrease your rate depending upon your zip code regardless of what your credit is like. You could have stellar credit but if you live in an "undesirable" zip code they will give you less credit and/or a higher percentage.

[mayfly0]

Such loan officers were totally despicable, unethical, parasitic people, in my mind. It shows a total lack of empathy on their parts, due too their continued involvement. Their probably only testifying too save theirselves, as you say above, and because the well run dry. We desperately need strong regulations, as it is obvious, that such people cannot be trusted too confrom too normal ethical behavior.
I feel sorry for all the honest people taken in, by such confidence tricksters.

[inteljournal]

"mud people"
"ghetto loans"

For them it's nothing personal...It's business!

[BBC9nch]

Wells fargo's money will make this story quickly go away. All will be forgotten by EOD tomorrow.

[4KixAfter6]

Well, this can't be good.

[thepoliticalcat]

People, especially from the r ig. h. t end of the spectrum, often say, "Oh, you're all just crying pre jud. ice. and playing teh r. ac. e card." Well, here's the proof, folks, not that most of us needed it. Banks deliberately did this. Loan officers, lenders, mortgage brokers, realtors, and appraisers, all knew, all participated. It couldn't have been done without all of them. Is this r ac. is. m? What do you think?

[Peaceisnecessary]

Yet, Pat Buchanan claims that Whites are suffering from reverse racism? He knows that Blacks and Latinos suffer everyday because of racism, but he wants everyone to feel bad for White males. I am definitely switching my mortgage from Wells Fargo. This is unconscionable.

[Carolab]

Kai Wright has a great series on this in The Nation.

[Tanyars5]

do you have a link for this series?

[jesseandrews]

Surprise greed at its uglyest.

[pghnappyrhino]

worst part: if they'd been given the mortgages they qualified for, they'd probably still be in their homes.

[Chicago48]

Not necessarily ^. The black unemployment rate is double the white unemployment rate. Blacks are losing their jobs (high paying and otherwise) quickly, and it's very possible, very probable, they couldn't keep those houses anyway.

There's blame on both parts. When you apply for a mortage, you are given 2 inches of paperwork. Nobody reads the paperwork, nobody gets a lawyer. They just sign.

[PeaceIsMyName]

I definitely do believe that they deliberately prayed upon the vulnerable in society from varies backgrounds, especially African-Americans, for their own greed.
The whole system needs to be revamped.

[Mondayboy]

preyed .....not prayed (you pray to God....) and it is varied or various........

let's take a few grammar and spelling classes then we can teach them something.

[PeaceIsMyName]

Please! Don't flatter yourself.

It was obviously a typing error. Also, you shouldn't be throwing stones in glass houses - judging by your own punctuation.

How pitiful that you feel the need to attempt to belittle someone based upon petty typos to make yourself feel better. :)

[tierone]

No?! Really?!

This also just in: cows moo.

[bustitbaby]

I wonder what the Maloof family has to say about this, since they are the majority shareholders of Wells Fargo?

[CitizenIndie]

Shocker.

No really.. I'm shocked. I really am.

I mean, ..ok. I'm NOT shocked.

[nutterbutter]

I remember when my father was bragging to me about how his church had a program where some people came in to give the congregants "classes" on home ownership. Once they took these classes, they could then somehow "qualify" for a home loan. The whole time I'm hearing this and shaking my head. I wonder how much money the "pastor" got for every loan one of his congregants "qualified" for. I guess it's all part of the prosperity doctrine.

[Chicago48]

So if the NAACP wins the class action lawsuit, how much will each homeowner get? Nada.