Bloomberg, March 18, 2022, Wells Fargo Sued by Black Borrower for Refinance ‘Redlining’
Wells Fargo & Co. was sued for discriminating against Black homeowners by relying on a modernized version of “redlining” that allegedly denied them lower interest rates through refinancing and forced them to pay more for loans.
The lawsuit, filed Friday in federal court in San Francisco as a proposed class action, argues that the practices in many cases pushed Black homeowners into foreclosure. Historically, redlining referred to the Federal Housing Administration’s refusal to insure mortgages in and near Black neighborhoods, and agreements that blocked or restricted the sales of homes to Black Americans.
“Federal data shows that over the last several years thousands of Black homeowners have been unable to maintain the dream of home ownership because of Wells Fargo’s ongoing and discriminatory modern day ‘redlining’ practices,” according to the complaint.
These types of examples of ‘redlining’ still remain in modern-day scenarios where bank lenders justify the need to deny blacks the same rights as whites in homeownership.