Wells Fargo & Co. has been sued by the city of Philadelphia for violating the Fair House Act of 1968, according to reports; Wells Fargo & Co. is accused of Appling predatory practices in lending minority mortgage borrowers. However, Wells Fargo & Co. denies the accusation, saying that their practice is fair and that the lawsuit is uncorroborated. This is a new lawsuit for the company besides the still ongoing lawsuit that was placed last year where its bankers were accused of using the name of customers to open bogus accounts. Wells Fargo & Co. cases are in the district court for the eastern district of Pennsylvania in the U.S.
According to allegations by the city, Wells Fargo & Co. involved in steering Hispanic and black borrowers into risky loans with higher interests whereas they could have offered them less risky loans with lower interests. The second allegation by Philadelphia is that Wells Fargo & Co. impeded these borrowers from refinancing their mortgages later as compared to white borrowers, therefore, leading to foreclosure by many of them. Investigations by the city were done for more than a year. From data analysis, black borrowers were twice likely to get high-interest loans as compared to the white borrowers while Hispanic borrowers were 1.7 more likely to get higher interest loans than the white borrowers. These are some of the facets of the accusations in the lawsuit. However, unlike with the bogus customer account scandal, Wells Fargo & Co. has stood to fight and stand to defend against the accusation. A spokesman put it that Wells Fargo & Co. said that the lawsuit had no evidence claiming its 140 years of existence in conducting fair lending practices.
Karl Heideck is an attorney that holds a degree from the Temple University Beasley School of Law. Karl Heideck earlier had graduated with bachelors of Arts degree in English and literature from Swarthmore College. He is currently operating in the Philadelphia region. His area of specialization is in legal matters that include compliance and risk management, civil litigation and assisting clients.
Currently, Karl Heideck as an attorney is dealing with cases that involve discovery for complex bank litigation and securities fraud. Additionally, he handles also acquisition and transactions in the 2008 mortgage crisis and risk management. Visit karl heideck at twitter.