Predatory Lending Lawsuits Against Wells Fargo Dismissed

By Tanaya Macheel July 20, 2015, 2:35 p.m. EDT 1 Min Read

Law and regulation

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Federal judges have dismissed two lawsuits that accused Wells Fargo of reverse-redlining in Los Angeles and Cook County, Ill., Reuters reported.

The city of Los Angeles had accused Wells Fargo of steering black and Hispanic borrowers into higher-cost mortgages, dating back to 2004, resulting in higher foreclosure rates and lower property tax collections.

U.S. District Judge Otis Wright said he found no evidence that Wells Fargo had violated federal laws within the alleged time frame, according to Reuters. Wright also said Los Angeles failed to identify a Wells policy to steer minorities into higher-cost loans.

In the Cook County predatory-lending case, U.S. District Judge Gary Feinerman said the county was not authorized to pursue a claim under the Fair Housing Act.

Tanaya Macheel

Reporter