WASHINGTON — Wells Fargo Bank will pay at least $175 million to settle accusations that it discriminated against black and Latino borrowers in violation of fair-lending laws, the Justice Department said Thursday.
Wells Fargo, the nation’s largest residential home mortgage originator, allegedly engaged in a pattern or practice of discrimination against qualified black and Latino borrowers from 2004 through 2009.
At a news conference, Deputy Attorney General James Cole said the bank’s discriminatory lending practices resulted in more than 34,000 borrowers in 36 states and the District of Columbia paying higher rates for loans because of the color of their skin.
The bank will pay $125 million in compensation for borrowers who were steered into subprime mortgages or who paid higher fees and rates than white borrowers. Wells Fargo also will pay $50 million in direct down payment assistance to borrowers in areas where the Justice Department identified large number of discrimination victims. The Associated Press
