Wednesday, August 05, 2009

6991: Wells Fargo Not So Well.

From The Chicago Tribune…

Madigan sues Wells Fargo

Illinois Atty. Gen. Lisa Madigan is suing Wells Fargo and Co., alleging the national mortgage lender discriminated against black and Latino homeowners by selling them high-cost home loans.

Madigan’s lawsuit, filed in Cook County Circuit Court, contends white borrowers received lower-cost loans than minority borrowers with similar incomes. The suit also alleges the firm’s policies and procedures rewarded employees for placing borrowers into high-cost mortgages, and it seeks restitution for those who received unfair loans, which could include reworking mortgage contracts. Wells Fargo rejected that assertion, stating: “The policies, systems, and controls we have in place — including in Illinois — ensure race is not a factor in the pricing or products we offer.”

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