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  Wells Fargo pays $175 million to settle racial steering case
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Last EditedRP  Jul 13, 2012 10:01am
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CategoryLegal Ruling
AuthorKevin G. Hall
News DateThursday, July 12, 2012 04:00:00 PM UTC0:0
DescriptionWells Fargo Bank, the nation’s largest originator of mortgages, agreed Thursday to a $175 million settlement with the Justice Department, which alleged the bank steered minorities into more expensive subprime loans with higher interest rates when they qualified for lower ones.

The settlement with the department’s Civil Rights Division still requires court approval, but it would be the second largest ever, falling short only of the $335 million settlement with Countrywide, a mortgage lender that was swallowed up by Bank of America.

In a consent order unveiled Thursday, the government alleged that bank regulators in 2009 determined that “there was reason to believe that Wells Fargo placed African-American applicants in the subprime mortgage lending channel . . . more frequently than similarly situated white applicants during the period from 2004 to 2008.”
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