The city of Philadelphia is suing Wells Fargo & Co. bank, claiming discriminatory lending practices.
Sozi Tulante, the city’s solicitor, said Wells Fargo has pushed minority borrowers into higher priced mortgages when they qualified for less expensive loans.
“There are pretty significant disparities for African-American, Latino and white borrowers,” he said. “For instance, loans in African-American neighborhoods that were 4.7 times more likely to result in foreclosure than a loan in a predominately white neighborhood.”
Rue Landau of the city’s Human Relations Commission commended Tulante for taking action.
“To know that banks like Wells Fargo are preying on people of color — and really leaving the city in disrepair and disarray — is just criminal,” she said. “I’m glad we are going after them.”
In a statement, Wells Fargo said the city’s “unsubstantiated accusations” do not reflect how it operates in Philadelphia or elsewhere.
The bank has prevailed in similar lawsuits filed in Los Angeles and Chicago.