Wells Fargo sued by Baltimore over maltreatment towards blacks

Beth Jacobson, ex-lender of Wells Fargo, said to the New York Times that Wells Fargo “rode the stagecoach from hell” as it targeted blacks in Baltimore and suburban Maryland for costly subprime loans during the housing boom.

The city of Baltimore is suing Wells Fargo over its mortgage lending practices in black neighborhoods. According to the city claims the bank’s mortgage practices eventually pushed several homeowners into foreclosure, costing the city millions in services and lost taxes.

“This lawsuit absolutely lacks merit,” said Wells spokesman Chris Hammond in San Francisco. “Wells Fargo’s lending practices did not cause foreclosures or any of the many broad problems the city claims are impacting its housing market.”

According to another Wells Fargo loan officer cited by the paper employees had referred to blacks as “mud people” and to subprime lending as “ghetto loans.”

Hammond responded, “We absolutely do not tolerate team members treating our customers or others disrespectfully or unfairly, or who violate our ethics and lending policies.

“We have principles, systems and processes team members must follow that ensure race is never a factor in the pricing or products we offer,” Hammond said. “We have worked extremely hard to make homeownership possible for more African-American borrowers and for all customer segments, and we have done so fairly and responsibly.”