Respected Philadelphia attorney Karl Heideck provides insights and analysis of a lawsuit that has been filed by the city of Philadelphia against one of the largest banks in the United States. According to Heideck, the city is suing Wells Fargo based on a contention that the bank is engaging in unfair lending practices.
The lawsuit specifically alleges that Wells Fargo has been directing minority residential loan applicants to riskier, high-interest rate mortgage loans when these people fully qualify for more traditional options. In other words, minority customers are being left to apply for and obtain far more costly home mortgage loans when white loan applicants are able to access lower-cost traditional loans.
The practice outlined in the lawsuit is akin to a practice that started in the 1930s and was known as redlining. Through the practice of redlining, entire neighborhoods were identified by banks, and a red line literally was drawn around them. These nearly always were neighborhoods with minority populations, particular with populations of African American residents. Banks would not extend home mortgage loans to these areas.
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The improper lending practices outlined in the Philadelphia lawsuit represents only the latest in a growing list of scandals associated with the San Francisco headquartered bank. Last year, Wells Fargo was in deep, hot water when it became known that its employees set up innumerable fake bank accounts, using real customer information. These employees engaged in this conduct to meet sales goals.
Karl Heideck practices in a number of areas of the law. These include litigation, employment law, products liability law, business law, regulatory compliance, and risk management. He is also skilled in the arenas of legal research and writing, which are invaluable to a lawyer in this day and age.
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