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Predatory Lending

Predatory Lending
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Predatory Lending   https://en.wikipedia.org/wiki/Predatory_lending  Does Not Pay Off for Wells Fargo.   As a result, Wells Fargo agreed to settle the lawsuit.   In this way, there would not be a trial related to their lending practices.

Background:

  • May 2017 the City of Philadelphia sued Wells Fargo for predatory lending violations..
  • Cause of action:    Violated the Federal Fair Housing Act.
  • The City alleged that, since 2004, Wells Fargo steered minority borrowers into higher cost, riskier loans than white borrowers even if they qualified for loans with better terms.
  • The City alleged Wells Fargo  refused to let minority borrowers refinance.
  • Black and Hispanic borrowers were much more likely to go into foreclosure on the loans that Wells Fargo gave them.
  • Philadelphia’s higher default rates for minority borrowers hurt the City financially:  lower property tax revenues and higher costs to combat crime and blight.

Outcome:

  • December 2017 Wells Fargo agreed to pay the City of Philadelphia  $10 million to settle the predatory lending lawsuit   Wells fargo predatory lending.
  • However, Wells Fargo denied the allegations in Philadelphia’s claim.
  • $8.5 million will be used to provide down payments and closing costs for low and moderate-income families.
  • The remainder of the money will go to preventing foreclosures and revitalizing vacant lots.
  • Predatory lending practices are not right and must be eliminated.

A real win for Philadelphia since their practices hurt so many.

If you feel you have been a victim of predatory mortgage lending, call me for a free bankruptcy consult.    Maybe you just borrowed more than you can afford.   You may still want to keep your home.   I will help you to determine if filing bankruptcy is right for you.

Contact me today:   Ralph A. Ferro, Jr., Esq.   (201) 446-5904   – You may be able to stay in your home.    With a Chapter 13 bankruptcy, you can spread out your mortgage arrearages over a 5-year period.