Just a year ago, the theory that poor and minority borrowers were to blame for the housing crisis took hold with a vengeance, and so did the belief that the government forced lenders to make subprime mortgages to meet affordable housing goals.
A Los Angeles Superior Court judge yesterday certified a lending discrimination class action against Wells Fargo Bank. The class action was brought against the lender on behalf of loan customers in minority communities in Los Angeles.
A lawsuit filed on behalf of minority mortgagors against Wells Fargo (WFC: 26.52 +1.18%) will proceed as a class action case after a Los Angeles Superior Court judge certified it as such. The suit alleges Wells Fargo discriminated against as many as 10,000 borrowers in minority communities by charging more for loans than borrowers paid
