by Anna Otieno
WHAT’S HAPPENING
- The recession hit minorities hard, as lenders preyed on black and Latino communities. Wells Fargo, the second largest mortgage lender in the U.S., is being slammed with a lawsuit accusing just that.
- Illinois Attorney General Lisa Madigan gathered evidence to slap Wells Fargo with their second discrimination suit in 2009. Earlier in the year, the financial giant was accused of predatory lending in Baltimore, Maryland.
- Evidence shows that white borrowers in the same income brackets as black and Latino borrowers received lower-cost loans from Wells Fargo. According to Madigan, these illegal sales practices have led to high foreclosure rates in minority communities (Reuters.com 7.31.09).
WHAT THIS MEANS TO BUSINESS
- Consumers not only want equal opportunity when it comes to acquiring mortgage loans, they also want companies to be held accountable for discriminatory practices.
- While consumers are picking up the pieces from the recession storm, they’re also searching for some justice.
RESOURCES
