Wells Fargo To Pay $175M To Settle DOJ Lending Bias Case

Law360, New York (July 12, 2012, 2:20 PM EDT) -- Wells Fargo Bank NA on Thursday agreed to shell out $175 million to resolve U.S. Department of Justice allegations that it discriminated against African-American and Hispanic borrowers during the height of the housing boom — the second-largest fair lending settlement in the DOJ's history.

The settlement requires Wells Fargo, the largest residential home mortgage originator in the U.S., to pay $125 million in compensation for more than 34,000 wholesale borrowers who were allegedly steered into subprime mortgages or who paid higher fees and rates than non-Hispanic...
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