Wells Fargo wins dismissal of L.A. predatory lending lawsuit
Mortgage lender Wells Fargo & Co on Friday won the dismissal of a lawsuit that accused it of breaching the federal Fair Housing Act (FHA) by applying in predatory lending practices in Chicago and Los Angeles.
Giving a big relief to the largest mortgage lender in the country, U. S. District Judge Otis Wright ruled that the undisputed facts showed that the lender didn't breach the FHA.
The accusation was made in December 2013 by Los Angeles City, which alleged that Wells Fargo had engaged in discriminatory lending practices since at least 2004 by targeting minority borrowers with high-cost, unaffordable costs that eventually resulted in a disproportionately huge number of foreclosures.
But the judge found that there was no violation of FHA by Wells Fargo during the two-year statute of limitations period.
Pronouncing the ruling, Judge Wright said, "In the name of advocating on behalf of minority borrowers, the city decided to fight for an outcome that would hurt those same borrowers. That decision is disheartening."
Wells Fargo spokesperson Ancel Martinez welcomed the ruling, saying the mortgage lender was pleased with the decision.
San Francisco-headquartered Wells Fargo is the largest mortgage lender and the fourth-largest bank by assets in the United States.
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