Wells Fargo Settles Charges of Discriminatory Lending
As a result of discriminatory lending allegations, last week Wells Fargo entered into a $175 million settlement agreement with the government. The U.S. Attorney General’s office states that Wells Fargo discriminated against 34,000 homeowners of Hispanic and African American origin nationwide. According to some estimates, at least 3300 of these homeowners were in Illinois.
Illinois victims are expected to receive $15 million in aid. Of the $15 million, $8 million will be in the form of cash payments. Homeowners who were steered into subprime loans can expect to get approximately $15,000 each. Homeowners who were charged higher fees for their loans can expect approximately $2000 each. Of course, each homeowner’s case will have to be individually assessed to determine the exact relief.
The balance of the Illinois settlement, $7 million, will be used for down payment assistance for Illinois borrowers.