The attorney for the city of Los Angeles has filed a lawsuit against Wells Fargo and Citigroup, for a “continuing pattern of discriminatory mortgage lending practices” that caused an increase in foreclosures in minority neighborhoods.
“Since 2008, banks have foreclosed on approximately 1.7 million homes in California, and Wells Fargo is responsible for nearly one in five of these foreclosures,” the lawsuit states. “These foreclosures often occur when a minority borrower who previously received a predatory loan sought to refinance the loan, only to discover that Wells Fargo refused to extend credit at all, or on equal terms as when refinancing similar loans issued to white borrowers.”
“We are disappointed that the LA attorney does not recognize our deep commitment to fair lending,” a Citigroup statement responded.
Wells Fargo added: “Wells Fargo has been a part of Southern California for over a century and we are proud of our record as a fair and responsible lender.”
