It appears that Wells Fargo is being sued on both coasts for mortgage fraud or discrimination. In the first case, filed in New York, Wells Fargo, the nation’s largest home mortgage lender, is accused of ignoring terms of a multi billion dollar settlement that was meant to resolve foreclosure abuse. This particular case is being heard in the U.S. District Court, Southern District of New York.
The lawsuit claims that Wells Fargo violated the rules of an agreement between Wells Fargo and five other big lenders and 49 state attorneys general. Evidently, the bank is accused of not reporting defective home loans to the government.
The West Coast case was filed in December of this past year. The Los Angeles city attorney has sued Wells Fargo and Citigroup, claiming that both organizations participated in mortgage discrimination, which led to a rash of home foreclosures in minority areas during the housing bust.
The lawsuits note that “vulnerable, under-served borrowers” who had been denied due to years of unlawful redlining practices leapt at the opportunity to purchase a home when it was possible to obtain a sub-prime home loan, even if they couldn’t afford it.
Contact Shaffer & Gaier: Protecting Homeowner Rights
The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.
