Subprime borrowers to receive payout from Wells Fargo settlement

More than a thousand Philadelphia borrowers will finally see part of the settlement between Wells Fargo and state regulators over discriminatory lending.

Between 2004 and 2009, Wells Fargo made subprime loans to African-American and Hispanic homebuyers in Philadelphia whom should have qualified for better terms and interest rates.

The discrepancies in Wells Fargo’s books were discovered by Pennsylvania’s Human Relations Commission in 2010, says spokeswoman Shannon Powers.

“They were singled out for unfair practices–based on our statistics–according to their race or ancestry,” she said.

Wells Fargo admitted no wrongdoing, but $3.2 million were earmarked for these homebuyers from a much larger sum agreed to in a multi-state settlement in July of 2012.