Wells Fargo responds to lawsuit alleging discrimination in lending practices | WFAE 90.7
Wells Fargo is responding to allegations in a lawsuit that the bank discriminated against black lenders, calling the claims unsubstantiated.
In a court case filed in February, a black homeowner in Georgia seeking to refinance his home claims Wells Fargo tried to charge him a higher interest rate than his credit score required. Two other borrowers have joined this lawsuit.
Wells Fargo has a massive business presence in Charlotte.
Top attorney Ben Crump joined an amended lawsuit in federal court in San Francisco last week. Crump then tweeted that Wells Fargo’s practices are “killing opportunities for black homeowners”.
Bloomberg news investigation in March, Wells Fargo approved 47% of refinance applications for black homeowners in 2020, compared to 72% of white applicants.
Wells Fargo is a financial supporter of WFAE.
The bank said in a statement that he is “deeply disturbed” by the allegations and called them “baseless attacks”.
“In 2020, Wells Fargo was the largest bank lender for home loans to Black families and this is consistent with our performance over the past decade (2011-2020), in which the company has helped so many Black families to buy houses than the next three largest. bank lenders combined,” Wells Fargo said.
The bank said that from 2019 to 2021, it saw a sharp increase in the number of refinance loans for black homeowners.
Wells Fargo has also rolled out a program for black and latino lenders earlier this month, which is providing $60 million in grants for 40,000 homeowners of color in eight markets to close the homeownership gap.