Wells Fargo to Pay $175 Million Over Fair-Lending Violations

The Justice Department has announced a $175 million settlement with Wells Fargo over accusations the bank violated fair-lending laws. Nearly 1,200 of the victims resided in the Houston area.

Wells Fargo allegedly engaged in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009. Many borrowers wound up losing their homes when the subprime mortgage market collapsed.

Richard Alderman is associate dean of the University of Houston Law Center.

“People who could have qualified for a prime mortgage at a very low rate were paying several points above that for a mortgage that they didn’t really have to take.”

Deputy Attorney General James Cole said the government will ensure that borrowers hit hard by the housing crisis will have an opportunity to access homeownership.

Cole said Wells Fargo’s discriminatory lending practices resulted in more than 34,000 borrowers in thirty-six states and the District of Columbia paying higher rates for loans solely because of the color of their skin.


Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

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