Posts and articles related to Lender Liability.
Amanda Bronstad March 24, 2011 A jury has awarded $3.52 million in damages to a class of Los Angeles homeowners who sued Wells Fargo & Co. for lending discrimination. Leila Noël The class members had alleged that Wells Fargo discriminated in its lending practices so that borrowers in predominantly minority neighborhoods were forced to pay more. On March [ More... ]
LOS ANGELES, CALIF.--After a three-month trial, a Los Angeles Superior Court jury returned a $3,520,000 lending discrimination verdict today against Wells Fargo Bank. (Opal Jones, et. al v. Wells Fargo Bank, N.A., Wells Fargo Home Mortgage, et. al Los Angeles Superior Court, Case No. BC337821) The class action lawsuit alleged the bank consistently and knowingly discriminated against borrowers in minority [ More... ]
LOS ANGELES, CALIF. (Nov. 15, 2010)--Jury selection begins this week in Los Angeles Superior Court in a lending discrimination class action against Wells Fargo Bank. Class members are loan customers in minority communities in Los Angeles. Plaintiffs' counsel will be arguing that Wells Fargo consistently and knowingly discriminated against borrowers in minority neighborhoods, resulting in these borrowers paying more for [ More... ]
Barry Cappello’s phone has been ringing off the hook these days, and, for bankers, this should be a wakeup call. Cappello is a veteran plaintiff’s attorney with a major-league specialization in lender liability cases. And chances are more than good that Cappello or one of his fellow borrower attorneys could be talking to your customers.
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
Much has been written about lenders desperately trying to shore up their books and become financially viable again. Unfortunately, this process is taking place at the expense of borrowers, especially builders and developers. During the last banking crisis in the late 1980s and early 1990s, lenders were accused of using heavy-handed tactics against borrowers they no longer wanted to lend money to. Builders, developers, farmers and small businesses were popular targets.
Cappello & Noël, LLP, a nationally renowned lender liability law firm, has taken over as legal counsel in a lender liability suit against Imperial Capital Bank (ICB). The suit, originally filed by RDS Villages in July 2008, involves a residential real estate development in Cathedral City, California known as Rio Del Sol.
Business borrowers are beginning to feel the ripple effects of the financial crisis as lenders tighten commercial lending in a cautionary attempt to stop further erosion of capital and assets, says lender liability expert A. Barry Cappello, managing partner with the Santa Barbara law firm of Cappello & Noël, LLP.
