The City of Baltimore and the NAACP have now filed suit against Wells Fargo for marketing sub-prime home loans to prime black borrowers. Because this is a law suit there are now sworn affidavits from people like Mr. Paschal who says:
They referred to sub-prime loans made in minority communities as ghetto loans and minority customers as "mud people..." The company put "bounties" on minority borrowers. By this I mean that loan officers received cash incentives to aggressively market sub-prime loans in minority communities.
The New York Times conducted their own study and found that in the city of New York, 16.1% of black borrowers making at least $68k per year had a sub-prime home loans while only 2% of white owners in the same income bracket had sub-prime loans. The New York Times quoted Beth Jacobson, Wells Fargo's top producing sub-prime loan officer, as saying:
We just went right after them. Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out sub-prime loans.
That's right, Wells Fargo aggresively marked sub-prime loans to black people at their churches. You can read more here.
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