Wells Fargo, Justice Department settle discrimination case for $175 million
In one of the largest fair-
lending payouts in history, Wells Fargo agreed on Thursday to spend at least $175 million to settle federal accusations that it steered black and Latino borrowers into high-cost loans and charged them excessive fees.
The settlement with the nation’s largest home mortgage lender is rooted in a lawsuit filed four years ago by Baltimore over fair-lending violations. It culminated Thursday in what federal officials called “systemic discrimination” spanning 36 states and involving more than 34,000 minority customers over five years.
“This is a case about real people — African American and Latino — who suffered real harm as a result of Wells Fargo’s discriminatory lending practices,” said Thomas E. Perez, assistant attorney general for civil rights.