Wells Fargo Settles Gov't Complaint Over Home-Buyer 'Redlining'
By Mike DeNardo
PHILADELPHIA (CBS) -- African-American homebuyers may be eligible for some cash, under the settlement of a multi-state "reverse redlining" complaint against Wells Fargo.
The Pennsylvania Human Relations Commission investigated complaints that Wells Fargo was charging African-Americans higher interest rates. Now, the settlement sets aside $2 million for African-American homebuyers in Philadelphia who got Wells Fargo home loans between 2004 and 2009.
"The specific practice outlined in the complaint was that Wells Fargo had practiced 'reverse redlining,' which is specifically targeting borrowers based on race for high-interest loans without regard for their ability to pay," explains Shannon Powers, a PHRC spokeswoman.
Another pool of settlement money would give qualified buyers up to $15,000 toward their down payments.
Under the $125-million settlement announced last Thursday, Wells Fargo admits no wrongdoing. Anyone who believes they are eligible for money under the settlement should send an e-mail the US Department of Justice at wellsfargo.settlement@usdoj.gov.
