Industry News

Wells Fargo agrees to pay $42 million to settle discrimination complaint

Complaint alleged that bank treated REOs better in white neighborhoods

Wells Fargo has agreed to pay $42 million to settle a complaint filed in April 2012 by the National Fair Housing Alliance (NFHA) that alleged that Wells Fargo maintained and marketed its repossessed properties in white neighborhoods better than it did it in minority neighborhoods, the NFHA announced today. The bank will fork over the money to the NFHA, 13 fair housing groups and the Department of Housing and Urban Development (HUD), which will use it primarily to support homeownership in minority neighborhoods impacted by the foreclosure crisis, according to the NFHA. The NFHA has filed similar complaints against Bank of America and U.S. Bank., acting on an investigation it conducted that found that those lenders also seemed to tend to their REOs better in white neighborhoods. The NFHA called the agreement with Wells Fargo the first of its kind "regarding the equal maintenance and marketing of REO homes," which seems to suggest that the complaints it's filed against the ...