Wells Fargo to Pay up to $50,000 per person in bias case against blacks, Hispanics

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Editor’s Notes:  

The point here, besides the obvious bias, is that they were targeting people who were unsophisticated and if it all possible had language problems. Why would they go to so much trouble to find hapless people who are not going to be able to pay for the loans? ANSWER: Because every time a loan fails it gives them another opportunity to make even more money than they did before. Since they were playing with investor money, the risk of loss was not factored in making the loans.

Remember that in Florida alone it was discovered than more than 10,000 people were newly licensed mortgage brokers, each of whom was a convicted felon for economic crimes. They needed people who would say anything to close the deal, NOT people who were looking out for the bank or its depositors because there were no depositors in most cases and even when a depository institution initiated the loan origination, they were not using their own money or credit. Nobody after that EVER paid one cent for any of the transfers, assignments, indorsements, or allonges. All the transactions were fake descriptions of transactions that never occurred.

And they are STILL trading on the bad loans even if they were long ago “foreclosed” and even if there was an eviction. They are trading the synthetic derivatives that were based upon the derivatives whose value was derived from the mortgage bonds whose value was derived from the home. All the trades are bogus. While all Americans suffer, the banks continue to generate “profits” that don’t actually exist because they are more than offset by an unstated liability for selling “forward” an asset that they know they never had and which has been lost through the foreclosure.

Nobody in mainstream media has YET picked up on this because of its obvious complexity. But when they, do, all hell will break loose. It will be discovered that the original loan was paid in full at the moment of origination and that all trades after the fake transaction used as the basis of the contents of the “closing documents” were faked, which is why they couldn’t come up with real documents and were submitting fabricated, robo-signed, surrogate signed, forged documents and recording them.

And that is the tip of the iceberg on the degree of corruption of our title system. Because all those trades, foreclosures and evictions can and should be reversed. And the economic collapse should and would be restored to normal economic activity with the wealth back where it belongs — in the hands of people who were cheated, deceived and discriminated against by the banks.

Justice Dept: Wells Fargo to pay $175M to settle allegations of bias against blacks, Hispanics

WASHINGTON — Wells Fargo Bank will pay at least $175 million to settle accusations that it discriminated against African-American and Hispanic borrowers in violation of fair-lending laws, the Justice Department announced Thursday.

Wells Fargo, the nation’s largest residential home mortgage originator, allegedly engaged in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers from 2004 through 2009.

At a news conference, Deputy Attorney General James Cole said the bank’s discriminatory lending practices resulted in more than 34,000 African-American and Hispanic borrowers in 36 states and the District of Columbia paying higher rates for loans solely because of the color of their skin.

Cole said that with the settlement, the second largest of its kind in history, the government will ensure that borrowers hit hard by the housing crisis will have an opportunity to access homeownership.

The bank will pay $125 million in compensation for borrowers who were steered into subprime mortgages or who paid higher fees and rates than white borrowers because of their race or national origin rather than because of differences in credit-worthiness.

Wells Fargo also will pay $50 million in direct down payment assistance to borrowers in areas of the country where the Justice Department identified large number of discrimination victims. Those areas are Washington, D.C., Chicago, Philadelphia, Oakland and San Francisco, New York City, Cleveland, Riverside, Calif., and Baltimore.

“The department’s action makes clear that we will hold financial institutions accountable, including some of the nation’s largest, for lending discrimination,” Cole said.

The settlement will bring “swift and meaningful relief” to African-American and Hispanic borrowers who received subprime loans when they should have received prime loans or who paid more for their loans, said Thomas Perez, assistant attorney general for the Justice Department’s civil rights division.

Perez said that because of the bank’s practices “an African-American wholesale customer in the Chicago area in 2007 seeking a $300,000 loan paid on average $2,937 more in fees than a similarly qualified white applicant. And these fees were not based on any objective factors relating to credit risk. These fees amounted to a racial surtax. A Latino borrower in the Miami area in 2007 seeking a $300,000 paid on average $2,538 more than a similarly qualified white applicant. The racial surtax for African Americans in Miami in 2007 was $3,657.”

Wells Fargo noted in a statement that it has denied the claims.

“Wells Fargo is settling this matter solely for the purpose of avoiding contested litigation with the DOJ,” it said, “and to instead devote its resources to continuing to provide fair credit services and choices to eligible customers and important and meaningful assistance to borrowers in distressed U.S. real estate markets.”

The part of the settlement for $125 million deals with mortgages that were priced and sold by independent mortgage brokers through Wells Fargo’s wholesale channel. The financial institution said that it is discontinuing financing mortgages that are originated, priced and sold by independent mortgage brokers through the mortgage wholesale channel.

“Through our separate decision to no longer fund mortgages through independent mortgage brokers, we can control how that commitment” to serving home ownership needs “is met on every mortgage that Wells Fargo makes,” said Mike Heid, president of Wells Fargo Home Mortgage.


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17 Responses

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  5. zionists?!? and i’m called crazy…

  6. I’m afraid I can’t agree that this will ever “hit main stream media” and cause a furror. MSM is completely biased and owned by the Zionists.

  7. stupid white people should be frustrated by this. i suspect was less of a clear racial policy and more of a “let’s see what we can get by with from people who don’t ask too many questions” policy. unfortunate, but kind of a caveat emptor issue at the end of the day

  8. two big thumbs up for USEDKARGUY …

  9. @ilovemympv: people in my circles are figuring out that the judges aren’t stupid, they’ve been playing dumb from the get-go. They know what’s going on, and they’re part of it. This brick wall called the rule of law has been made impenetrable by your US Government. Don’t think for a minute that the “ruling class” does not include judges. C’MON! That’s where it starts. I they can’t pass a law in congress, the judiciary legislates from the bench. This is much, much larger. This is the institution of servitude upon the American people. Try filing a complaint against a member of the bar and see what kind of concern you get from the guy at the other end of the line: “uh huh, uh huh,..no, don’t send me that, no, not that, uh uh, nope, just send the two things I asked for….”. they don’t want to get bogged down with too many FACTS.
    @dcb: yes, David, the loans are traded even after a defaulted modification. They re-securitized the debt from the mod which is 2 times the value of the RE. Lots of defaults reported, but no claims filed against the insurance certificate. why? no loss to claim! extinguished with the CDSwap/TARP/write-off.

  10. “Nobody in mainstream media has YET picked up on this because of its obvious complexity.”

    Why is it complicated to look at their trust books online an do page prints of active loans that were siezed and or liquidated long ago==prior periods –sometimes liquidated multiple times. Investor fraud–trustee fiduciary disclaimers that they are not responsible for damage to you their investors “even if they know the numbers are wrong” cites availble on request

  11. @AUTHOR
    Your comment
    “And they are STILL trading on the bad loans even if they were long ago “foreclosed” and even if there was an eviction. They are trading the synthetic derivatives that were based upon the derivatives whose value was derived from the mortgage bonds whose value was derived from the home.”

    This understates the degree of predatory conduct. They were aggressive everywhere to everybody—but may have seen more homeownership expansion in the minority community–but do not buy the idea thats exclusive.

    Further, ther loans are carried on the trustee books long after the house was siezed and loanwritten down at least—but not losses not reflected on the books at all for use by “investors”

  12. Are you guys kidding,both sides are in on this charadeand if we start witht he black/white stuff we stay focused elsewhere while they steal another trillion.

    I smell QE 6 right before elections!!!

  13. Hey 4YAH, youse from over by ‘dere? A couple-two-tree blocks off ‘a Cicero? Soud ‘a Grand? ‘da used car lot nex to ‘da bah?

  14. and nuthin’ for the stupid white people. Figures, huh?

  15. any win is good any

  16. Sure no whites were targeted or harmed …. I hate that they try and make this into a black -white issue….. Scumbags !

  17. The TRUTH of Matter is more likely the Legal Terrorist Holder’s D.O.J. is aiding and abetting a Extortionate Shakedown of Private Businesses to BRIBE his KINGFISH’s Political Base, to BUY VOTES with: Some BODY ELSE’$ Money. This is the modus operandi of the Chicago MOB’s Thief in Chief and His Shyster Legal Mercenary COVER UP artiste Extraordinaire.
    More PAYOLA for the DIS-advantaged Minority / [soon to be Election Stealing Majority ] by UN-Qualified VOTERS by the Treachery of THIS FELONIOUS ADMINISTRATION Acting as the C.I.A. styled special Ops Mafioso thieves they ARE!

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