Thursday, June 21, 2012

Wells Fargo agree to pay out $434 MILLION

Wells Fargo has agreed to pay out $432.5 million to settle a lawsuit over predatory lending to minorities.

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

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