Origination/Lending
City of Baltimore Sues Wells Fargo Over Subprime Mortgages
By: PAUL JACKSON
January 8, 2008
related
- Wells Fargo Ditches Subprime Wholesale - Will Others Follow Suit?
- Wells Fargo Re-Ups Servicing Contract with Fidelity
- Wells Fargo: Earnings Drop as More Borrowers Miss Payments (Update 1)
The City of Baltimore on Tuesday said it had filed the first lawsuit brought by a major American city against a national lender, alleging that Wells Fargo Bank engaged in what it called “reverse redlining” — in other words, targeting minorities for subprime loans.
The suit, filed in U.S. District Court for the District of Maryland, alleges that Wells Fargo Bank has, since at least 2000, intentionally targeted Baltimore’s minority communities for bad loans with discriminatory and unfair terms.
“These illegal lending practices have resulted in extraordinarily high rates of foreclosure in some of Baltimore’s most vulnerable communities – foreclosures that ultimately cost the City millions of dollars in lost tax revenues, added police and fire costs, court administrative costs, and social programs needed to maintain stable and healthy neighborhoods,” according to a press statement released by the city.
The city is suing for lost revenue and added costs associated with foreclosures, as well as for punitive damages.
Click here for the full press release.
recent stories by department
Origination/Lending
Secondary Market/Investors
Servicing/Default
- Pace of Defaults in California Slows During June
- Subprime ARMs Defaulting, Despite Loan Modifications
- American Home’s Servicing Platform Receives Initial Ratings from Fitch
- Nearly Half-Million Foreclosures in First Half of 2008: Report
- Impac to Purchase UBS Special Servicing Platform; Reinvention in Distressed Assets
Events
Sun - Jul 20
2008 LoanPerformance RiskSummit
Cerberus Capital Management chairman John Snow keynotes this risk management event for LP clients and vendors.
Tue - Aug 12
Western States Loan Servicing Conference
Annual servicing industry conference hosted by the CMBA; usually well attended on a national level.
Sat - Aug 23
Executive Summit on Mortgage Fraud
High-level conference focused on quantifying and managing mortgage fraud. Speakers to include execs from OFHEO, FBI, Fannie, Freddie.
Wed - Sep 17
Five Star Conference
Default and REO industry conference, hosted by trade publication DS News. Heavily attended by REO agents.
Sun - Oct 19
MBA Annual Convention & Expo
The annual conference for MBA members and affiliates, and the largest industry event each year.
newsletter signup
Join more than 3,000 bold subscribers who already get HW's daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.






