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Wells Fargo sued for alleged predatory lending

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Wells Fargo & Co. and its subsidiary Wells Fargo Financial were named today in a lawsuit that accuses the financial company of engaging in predatory lending of sub-prime mortgages and equity loans to low-income borrowers. The suit, filed on behalf of the Association of Community Organizations for Reform Now, alleges Wells Fargo engages in a "bait-and-switch" plan that solicits targeted homeowners to refinance their debt on more favorable terms. According to the suit, however, the borrowers are presented at closing with terms different than those initially offered, including higher points and higher interest rates. The suit also alleges Wells Fargo failed to inform borrowers with good credit that they could qualify for loans on better terms than those offered by Wells Fargo Financial. In a statement, Mark Oman, group EVP of home and consumer finance for Wells Fargo, said the company had not yet seen the lawsuit, but that the group has taken facts about Wells Fargo Financial's c...