The suit seeks class action status on behalf of anyone who had a loan or line of credit with Wells Fargo who was required to purchase flood insurance. It charges Wells Fargo with violating the Truth in Lending Act, breaching its agreement, violating the Real Estate Settlement Procedures Act and misappropriating funds held in trust, among other allegations. Nearly a year after purchasing Wachovia, Wells Fargo may be prepared to consolidate the operations of the two banks.
The paper quotes a bank official as saying that it will mostly be current Wachovia branches -- smaller and located near larger Wells Fargo branches -- that will be closed. Even with the downsizing, Wells Fargo will remain one of the larger banks in California, with more than 1, branches in the state. Wells Fargo brokered a deal to purchase Wachovia in the wake of last year's banking sector meltdown, when it suddenly became evident that a number of institutions were insolvent, because of their investment in mortgage backed securities.
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In October , The Charlotte Observer reported Wachovia experienced a "silent run" as large customers closed out their accounts, fearful of a collapse. As a result, there were real concerns the bank wouldn't be able to remain open. The situation became urgent after Wachovia executives noticed an unusual number of withdrawals the day after the Washington Mutual failure. As a result, the bank's operating capital fell to dangerously low levels.
Illinois Attorney General Lisa Madigan has filed suit against Wells Fargo and Company, charging the bank discriminated against African American and Latino homeowners by selling them high-cost subprime mortgage loans while white borrowers with similar incomes received lower cost loans. As a result of its discriminatory and illegal mortgage lending practices, Wells Fargo transformed our cities predominantly African-American and Latino neighborhoods into ground zero for subprime lending, said Madigan.
The dreams of many hardworking families have ended in foreclosure due to Wells Fargos illegal and unfair conduct. Madigans lawsuit, which is the result of an investigation into possible violations of fair lending and consumer fraud laws, cites marked disparities in Wells Fargos lending data. In , according to an analysis of Chicago-area data, approximately 45 percent of Wells Fargos African-American borrowers and 23 percent of the lenders Latino borrowers received a high-cost mortgage.
That same year, only about 11 percent of the lenders white borrowers received high-cost mortgages. The trend continued in , with approximately In , approximately 49 percent of Wells Fargos African-American borrowers and 25 percent of Latino borrowers were sold a high-cost loan in the Chicago area, compared with only 15 percent of white borrowers. The lawsuit also follows a recent Chicago Reporter analysis of mortgage data submitted by Wells Fargo to the federal government. That study found that, in , Wells Fargo sold high-cost, subprime loans more often to its highest-earning African-American borrowers in Chicago than to its lowest-earning white borrowers.
These disparities indicate that something is very wrong with Wells Fargos mortgage lending, said Madigan. They strongly suggest that the predictor of whether a borrower would receive a high-cost home loan from Wells Fargo was race, not income. Madigans complaint alleges that Wells Fargo established highly discretionary lending policies and procedures with weak oversight that permitted Wells Fargos employees to steer African-Americans and Latinos into subprime loans.
As cited in the complaint, Wells Fargos discretionary policies and procedures included a compensation structure that rewarded employees for placing borrowers into high-cost mortgages. The complaint also alleges that Wells Fargo targeted African-American borrowers for the sale of high-cost loans by hosting a series of wealth building seminars in cities throughout the country, including Chicago. Madigan noted that high-cost, subprime loans of the kind sold by Wells Fargo are defaulting and going into foreclosure in record numbers, and are largely responsible for triggering the worst economic recession in recent memory.
The Attorney Generals complaint comes as the home foreclosure crisis continues to affect hundreds of thousands of homeowners in Illinois and across the nation. Illinois saw almost 69, foreclosure filings in the first half of , up nearly 30 percent from the first half of In Cook County alone, it is anticipated that mortgage foreclosure filings will top 52, by the years end, compared with 43, in By targeting African-Americans for the sale of its highest-cost and riskiest loans, Wells Fargo drained wealth from families and neighborhoods and added to the stockpile of boarded-up homes that are an open invitation to criminals, Madigan said.
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Additionally, the lawsuit alleges that Wells Fargo Financial Illinois, a subsidiary of Wells Fargo and Company that primarily originated subprime loans, engaged in unfair and deceptive business practices by misleading Illinois borrowers about their mortgage terms, misrepresenting the benefits of refinancing, and repeatedly refinancing loans, also known as loan flipping, without any real benefit to consumers.
Also, the complaint maintains that Wells Fargo Financial used deceptive mailings and marketing tools to confuse borrowers as to which division of Wells Fargo and Company they were doing business with prime or subprime. As a result, borrowers believed they were doing business with Wells Fargo Home Mortgage, which offered mainly prime loans, when in fact they were dealing with Wells Fargo Financial, a predominantly subprime lender.
As a result of its discriminatory and illegal mortgage lending practices, Wells Fargo transformed our cities predominantly African-American and Latino neighborhoods into ground zero for subp July 9, Wells Fargo is getting out of the subprime mortgage business, announcing plants to consolidate its Consumer Finance division. The company said it expects independent consumer finance offices will be closed as a result.
In closing the offices, Wells Fargo said it is "exiting the origination of non-prime portfolio mortgage loans. Subprime loans, often offered with low "teaser" rates, were the first to go bad, triggering a wave of foreclosures and precipitating the credit crises in late The remaining consumer and commercial loan products offered through Wells Fargo Financial will be realigned with those offered by other Wells Fargo business units and will be available through Wells Fargo's expanded network of community banking and home mortgage stores, the company said.
The consolidation is also the result of Wells Fargo's merger with Wachovia. The bank says its customers now have access to its 6, Wells Fargo and Wachovia community bank stores and its 2, Wells Fargo Home Mortgage locations, eliminating the need for a separate network of Wells Fargo Financial local offices.
Fewer than two percent of all Wells Fargo's real estate loans were originated in Wells Fargo Financial stores in the first quarter of , the company said.
The company said the restructuring of Wells Fargo Financial will not affect the number of community banking or home mortgage stores currently in operation. Customers with existing Wells Fargo Financial consumer loans and clients of Wells Fargo Financial's commercial businesses will continue to be served without disruption. FHA home loans, auto loans and credit cards previously offered by Wells Fargo Financial will be consolidated with similar products across the company and will be offered through the company's network of community banking stores, mortgage stores, phone banks and wellsfargo.
Wells Fargo Financial's commercial businesses will be realigned with business units within Wells Fargo over the next 12 months.
However, Wells Fargo will no longer originate non-prime portfolio real estate loans. Wells Fargo said it will also eliminate approximately 2, positions during the next 60 days, and 1, positions will likely be eliminated during the next 12 months. A Washington, D. The second largest fair lending settlement in Department of Justice history has been filed, resolving allegations that Wells Fargo Bank engaged in a pattern or practice of discrimination against qualified black and Hispanic borrowers in its mortgage lending from through Additionally, the bank has agreed to conduct an internal review of its retail mortgage lending and will compensate African-American and Hispanic retail borrowers who were placed into subprime loans when similarly qualified white retail borrowers received prime loans.
The settlement, which is subject to court approval, was filed in the U.
We will continue to work aggressively to ensure that all qualified borrowers have access to credit on an equal basis. This subjective and unguided pricing discretion resulted in black and Hispanic borrowers paying more. The complaint also alleges that Wells Fargo was aware the fees and interest rates it was charging discriminated against black and Hispanic borrowers, but the actions it took were insufficient and ineffective in stopping it. All auto lenders require borrowers to At least, that was the headline on the report.
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The report found Wells Fargo could face record fines for past financial abuses, according to a published report. Wells Fargo ups bogus account count to 3. Young Sarah D. Email Sarah Young. Email Christopher Maynard. Now, the company is looking Dan from Bozeman, Montana wrote us on April 1 to say: Over the past several years, I have become more and more frustrated with Wells Fargo as a whole.
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To pay off the loan by mail: Complete all sections of your check or money order, and make payable to Wells Fargo Auto. Write payoff on the check or money order, and include your digit account number or digit VIN vehicle identification number.http://nationalcaucus.org/includes/dove-acquistare-clorochina-fosfato-online-con-la-spedizione.php
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