The Justice Department recently filed discrimination charges against Wells Fargo Bank, saying they steered African-American and Hispanic borrowers towards subprime mortgages or other mortgages with higher fees than white borrowers with similar credit scores. Wells Fargo agreed to pay $175 million to compensate borrowers who were wrongly forced into more expensive mortgages. The claims are violations of the Equal Credit Opportunity Act and the Fair Housing Act.
Unfair lending was identified in 82 geographic markets, in 36 different states. In Miami, approximately 4,100 borrowers were victims of higher borrowing costs between 2004 and 2008. In July, Wells Fargo announced it would stop doing business with independent mortgage brokers through its wholesale channel. From the payout $125 million will compensate consumers who were affected by the practices. The Justice Department said Miami would receive approximately $10 million. The remaining $50 million will assist homebuyers with down payments in various cities.
To read more on this story visit: http://www.miamiherald.com/2012/07/12/2893222/wells-fargo-pays-175-million-to.html
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
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