Illinois Attorney General Lisa Madigan filed a lawsuit Friday against Wells Fargo, alleging the lender illegally discriminated against minority borrowers, report the Wall Street Journal. In the suit, Madigan alleged that Wells Fargo disproportionately sold African-American and Hispanic borrowers high-cost, subprime mortgages, while white borrowers with similar incomes received mortgages with more favorable terms. She claimed that Wells Fargo illegally conducted “reverse redlining,” specifically targeting minority neighborhoods for abusive loans. “I’m talking of the worst of the worst bad loans that were sold in the run-up to the collapse of the housing market,” the attorney general said. Wells Fargo said race isn’t a factor in its lending decisions and called the lawsuit a “complete mischaracterization” of its practices. Madigan said the lawsuit resulted from an investigation into possible violations of fair-lending and consumer-fraud laws. The suit seeks civil penalties against Wells Fargo and a court order ending the alleged practices.
Illinois Sues Wells Fargo For Mortgage Discrimination
Bank calls lawsuit a “complete mischaracterization” of its practices.