The city of
Memphis, Tennessee, sued the bank claiming that it unfairly targeted low-income
African-American communities for high-interest and high-fee loans. The city
alleged that the bank used deceptive marketing, failed to properly explain the
loan terms to borrowers, and then sold the loans on secondary markets to reduce
its own risk, CNN Money
reported.
Under the terms of the settlement agreement, Wells Fargo will lend up to $425 million to residents of Memphis and the adjoining counties with $125 million set aside for high-risk borrowers.
An additional $3 million will be paid to the city for economic development. Wells Fargo will also provide $4.5 million in funding for property improvements and community grants.
If you are a distressed homeowner having difficulties paying your mortgage, call me today.
Nidia Nuristani
Realtor / Certified Distressed Property Expert
Direct: (408) 835-2457
nidia@hbrealtyinc.com
