Wells Fargo, Countrywide Sued Over Racial Issues

Two black homeowners have sued Wells Fargo & Co, accusing the second-largest U.S. mortgage lender of racial discrimination in how it sets rates and fees. SOme say loan officers have a discretionary pricing policy that results in loan officers adding points and fees to black borrowers

In their complaint, Nancy and Johnny Jeffries accused Wells Fargo of marking up interest rates or adding fees for black borrowers seeking mortgages after agreeing to lend based on more well-defined criteria such as credit histories and home values. The southwest Chicago homeowners said this violates the federal Fair Housing Act and Equal Credit Opportunity Act.

It is similar to a July 12 lawsuit against Countrywide Financial Corp, the largest U.S. mortgage lender, in a Massachusetts federal court. Countrywide is based in Calabasas, California.