Wells Fargo has agreed to pay $175 million to resolve allegations that they discriminated against minorities by steering them into sub-prime mortgages or high interest loans during and after the housing bust.
The U.S. Department of Justice launched a lawsuit against the country’s largest mortgage loan originator alleging that discriminated against minorities by offering them high interest loans on the sole basis of their skin color instead of their credit worthiness.
Bank of America and Sun Trust were accused of the same predatory lending practices and previously settle with the DOJ for $300 million and $50 million respectively.
The banks admitted no wrong-doing but agreed to the pay the settlement to avoid the cost of defending themselves against a federal lawsuit.
African-Americans and Latinos were adversely affected by the foreclosure crisis partly because they were unfairly steered into subprime mortgages or given higher interest rates. Subprime loans can cause monthly mortgage payments double or triple, making it likely that homeowners would default on their mortgages and therefore be forced to retain a foreclosure attorney to stop the banks from repossessing their homes.
Foreclosures have been a drag on the housing market and when at all possible, those who have been served with a default notice should fight to save their homes backed up with an expert foreclosure lawyer.
Because of their skills and experience a foreclosure attorney can help a homeowner negotiate for a loan modification. They can also advise a person on whether they should opt for a short sale or declare bankruptcy with the goal of stopping foreclosure.