Redlining Suits Advance

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According to the NYT, two suits out of Baltimore and Memphis survived their respective motions to dismiss brought by predatory lending bank Wells Fargo:

Two lawsuits accusing Wells Fargo of discriminatory lending practices have been allowed to move forward, a victory for plaintiffs that have accused the bank of steering African-Americans toward predatory loans.

[…]

[T]he city [of Baltimore] provided the link by claiming that Wells Fargo deliberately steered African-American borrowers who qualified for prime mortgages into subprime loans. As a result, the plaintiffs claim, borrowers who could have kept up with payments on a prime loan defaulted because of the more expensive subprime payments. The city also contends that Wells Fargo approved mortgage refinancing or home equity loans for African-American borrowers even though it knew or should have known that the borrowers couldn’t afford the payments.


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