Post by jeffolie on Jul 12, 2012 14:20:00 GMT -6
Bigot banks pay big fines...no jail again for bankers, DOJ
If a average person with a job/a place of authority was convicted, there would be jail time. Again, the slap on the wrist with a fine that the market ignores and does not hurt the banks' stock prices. Bankers can be expected to reward Obama with donations to his super PAC. Obama's Dept of Justice deals unfairly.
".. charged higher fees and interest rates because of their race or national origin ... While Wells Fargo WFC +0.15% , the nation’s biggest U.S. mortgage lender, said it denies the claims, the company said it would compensate those the government believes were adversely impacted by mortgages priced and sold by independent mortgage brokers through its wholesale channel. ..."
===================
July 12, 2012
Wells Fargo to pay $175 mln on fair-lending charge
(MarketWatch) — Wells Fargo & Co. on Thursday said it will pay a total of $175 million to settle Justice Department charges that the company violated fair-lending laws for its role in allegedly steering black and Hispanic borrowers into subprime mortgages.
According to the Justice Department, the settlement provides $125 million in compensation for borrowers who the agency alleges were steered into subprime mortgages or who paid higher fees and rates than white borrowers because of their race or national origin, not because of their creditworthiness or other financial risk.
“An applicant’s creditworthiness, and not the color of his or her skin, should determine what loans a borrower qualifies for,” said Deputy Attorney General James M. Cole in describing the second-largest residential fair-lending settlement.
While Wells Fargo WFC +0.15% , the nation’s biggest U.S. mortgage lender, said it denies the claims, the company said it would compensate those the government believes were adversely impacted by mortgages priced and sold by independent mortgage brokers through its wholesale channel.
The Justice Department also said Wells Fargo will also provide $50 million in direct down payment assistance to borrowers in U.S. communities the agency identified as having large numbers of discrimination victims.
The settlement also resolves pending litigation filed in 2009 by the state of Illinois on behalf of borrowers there, according to Wells Fargo.
The bank said Thursday that on July 13 it will discontinue funding mortgages that are originated, priced and sold by independent mortgage brokers through its wholesale mortgage unit.
“Wells Fargo takes pride in serving the home ownership needs of all of our customers, and we are fully committed to fair and responsible lending,” said Mike Heid, president of Wells Fargo Home Mortgage, in a statement.
“Through our separate decision to no longer fund mortgages through independent mortgage brokers, we can control how that commitment is met on every mortgage that Wells Fargo makes,” said Heid.
The settlement comes after the Justice Department reached a similar pact with Bank of America Corp. in December. In that case, the agency struck a $335 million settlement with Bank of America BAC -0.07% over alleged discriminatory lending practices by its Countrywide Financial Corp. unit during the build up to the financial crisis of 2008.
The complaint in that settlement alleged that the borrowers in 41 states and the District of Columbia were charged higher fees and interest rates because of their race or national origin. Read about the U.S. being in a $335 million settlement with Bank of America over discriminatory lending practices
www.marketwatch.com/story/wells-fargo-to-pay-175-mln-on-fair-lending-charge-2012-07-12?dist=afterbell
If a average person with a job/a place of authority was convicted, there would be jail time. Again, the slap on the wrist with a fine that the market ignores and does not hurt the banks' stock prices. Bankers can be expected to reward Obama with donations to his super PAC. Obama's Dept of Justice deals unfairly.
".. charged higher fees and interest rates because of their race or national origin ... While Wells Fargo WFC +0.15% , the nation’s biggest U.S. mortgage lender, said it denies the claims, the company said it would compensate those the government believes were adversely impacted by mortgages priced and sold by independent mortgage brokers through its wholesale channel. ..."
===================
July 12, 2012
Wells Fargo to pay $175 mln on fair-lending charge
(MarketWatch) — Wells Fargo & Co. on Thursday said it will pay a total of $175 million to settle Justice Department charges that the company violated fair-lending laws for its role in allegedly steering black and Hispanic borrowers into subprime mortgages.
According to the Justice Department, the settlement provides $125 million in compensation for borrowers who the agency alleges were steered into subprime mortgages or who paid higher fees and rates than white borrowers because of their race or national origin, not because of their creditworthiness or other financial risk.
“An applicant’s creditworthiness, and not the color of his or her skin, should determine what loans a borrower qualifies for,” said Deputy Attorney General James M. Cole in describing the second-largest residential fair-lending settlement.
While Wells Fargo WFC +0.15% , the nation’s biggest U.S. mortgage lender, said it denies the claims, the company said it would compensate those the government believes were adversely impacted by mortgages priced and sold by independent mortgage brokers through its wholesale channel.
The Justice Department also said Wells Fargo will also provide $50 million in direct down payment assistance to borrowers in U.S. communities the agency identified as having large numbers of discrimination victims.
The settlement also resolves pending litigation filed in 2009 by the state of Illinois on behalf of borrowers there, according to Wells Fargo.
The bank said Thursday that on July 13 it will discontinue funding mortgages that are originated, priced and sold by independent mortgage brokers through its wholesale mortgage unit.
“Wells Fargo takes pride in serving the home ownership needs of all of our customers, and we are fully committed to fair and responsible lending,” said Mike Heid, president of Wells Fargo Home Mortgage, in a statement.
“Through our separate decision to no longer fund mortgages through independent mortgage brokers, we can control how that commitment is met on every mortgage that Wells Fargo makes,” said Heid.
The settlement comes after the Justice Department reached a similar pact with Bank of America Corp. in December. In that case, the agency struck a $335 million settlement with Bank of America BAC -0.07% over alleged discriminatory lending practices by its Countrywide Financial Corp. unit during the build up to the financial crisis of 2008.
The complaint in that settlement alleged that the borrowers in 41 states and the District of Columbia were charged higher fees and interest rates because of their race or national origin. Read about the U.S. being in a $335 million settlement with Bank of America over discriminatory lending practices
www.marketwatch.com/story/wells-fargo-to-pay-175-mln-on-fair-lending-charge-2012-07-12?dist=afterbell