Wells Fargo’s Discrimination During the Housing Boom
Wells Fargo, one of the top five banks in the nation, has agreed to pay a settlement of $175M for DISCRIMINATION against Black and Hispanic borrowers during the housing boom, according to the Justice Department yesterday. Is this a slap on the wrist or a fair settlement? FAIR? Please spare me!!
If approved by a federal judge, this would make this the second highest settlement in residential “fair lending”. An investigation by the civil rights division of the justice department found that brokers working with Wells Fargo charged higher fees to more than 30,000 minority borrowers. I believe this number is less than 50% accurate, given the sweeping numbers of sales back in the boom market. Then the same bank also steered 4,000 borrowers into sub-prime mortgages from 2004 to 2009, the announcement said, which to me seems grossly miscalculated. Where these numbers are created is never disclosed, causing me to believe they are not absolutely correct. When will the big banks stop misleading us?
This is the worst criminal racial profiling in our American society and the Federal judge who will approve this settlement amount should be unseated from the seat of majesty. This bank should pay dearly–a minimum of a $1B fine! Now, with the news from Bank of America, illegal foreclosures from the now JP Morgan Chase trading fiasco loss originally tabbed at $2B, now over $4B! When will it stop?: CEO Jamie Dimon offered an apology and closed the division, while four employees resigned–the one who collected a $15M salary last year, no doubt, profited dramatically in the scam. What does this mean to us middle-class Americans less than 4 years after the 2008 financial crisis caused by the largest banks and now a new alarm sounding that latest actions are compromising the integrity of the US financial system? Find your exact rights with your specific institution, speak with an attorney if you were foreclosed on or did a short sale, and choose wisely who you or your loved ones bank with. Until Americans take the bull by the horns and stop doing business with these people, will our future and our children’s future by secure?
President Obama has made some blunders. Regardless of if our country be better off with him or without him in the future; he can act now to make a change for the future. The good people out there still struggling to keep their home or who already lost their home due to gross mistakes by these banks, should be given special incentives to make restitution. The laws protecting Americans from having to sell their homes expire at the end of the year and need to be extended now. Come on; step up NOW, Mr. President!!