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Wells Fargo Sued By Baltimore for Abusing Black Borrowers

I can’t make this up – watch this video [link].

You know how brokers are always being slammed for “bad loans”? This actually proves it was not the broker but the lender who was most guilty as I have insisted all along. In fact as brokers we were and are able to beat the lender’s pricing all the time with qualified borrowers for this very reason. We still beat Wells Fargo – just ask our customers – on price and service.

The Wells Fargo suit was actually filed in January of 2008 but is now coming before a judge. According to a report in the Baltimore Sun, “Two former Wells Fargo employees have claimed in depositions that the company’s prime loan officers reaped rewards for steering customers who qualified for regular lending to subprime loans. Tony Pachal, a loan officer from 1997 to 2007, also said employees used racial slurs to describe minority customers and referred to subprime loans as ‘ghetto loans.’”