You may or may not be surprised to find out that over the past few years it has been discovered that Huge Banks such as Wells Fargo and Bank of America have been found to discriminate against their own customers by charging them thousands more in broker fees if they are Black or Latino. This is believed to be one of the reasons behind what started the Housing crash a few years ago when President Obama 1st took office because it drove a lot of people into debt and caused millions of home foreclosures. The Bank Department of Civil Rights Division made these discoveries and found that mortgage brokers working with Wells Fargo had charged higher fees and rates to more than 30,000 Black and Latino borrowers across the country than they had to white borrowers who posed the same credit risk and also steered more than 4,000 Black and Latino borrowers into costlier sub-prime mortgages when white borrowers with similar credit risk profiles had received regular loans.
These practices amount to a “racial surtax” and Wells Fargo’s African-American and Latino borrowers had no idea they could have gotten a better deal, no idea that white borrowers with similar credit would pay less.” The Division” took these banks to trial after accumulating a substantial amount of evidence to prove these claims. After being found guilty of these Racist Practices, Wells Fargo, the nation’s largest home mortgage lender, has agreed to pay at least $175 million to settle accusations that its independent brokers discriminated against black and Latino borrowers during the housing boom. The division settled a similar lawsuit with Bank of America for $335 million over loan discrimination by its Countrywide Financial unit. SunTrust Mortgage agreed to pay $21 million in a similar case.
Just in case anybody thought race was no longer an issue in this country… Why do you think Huge corporations and banks would do such a thing? Do you think it’s a form of modern day segregation? An attempt to make it harder for African-Americans and Latinos to prosper in America by becoming homeowners and building a foundation for their family’s future??? Just something you might want to give some thought to.