Wells Fargo Settles Foreclosure Complaint

Posted by Patrick Barnard on June 10, 2013 No Comments
Categories : Mortgage Servicing

Wells Fargo has reportedly agreed to a $42 million settlement after being accused by the National Fair Housing Alliance (NFHA) of neglecting the maintenance and marketing of foreclosed homes in certain black and Latino neighborhoods.

The settlement follows a yearlong investigation by the NFHA that revealed that homes serviced by Wells Fargo in minority communities were allowed to fall into disrepair.

Wells Fargo has not admitted any wrongdoing in the case. As part of the settlement the bank will provide $27 million to nonprofit groups to promote homeownership, neighborhood stabilization and property rehabilitation in 19 metropolitan areas.

In addition it will provide $11.5 million to the Department of Housing and Urban Development (HUD) to help 25 other cities, according to a report in the Washington Post.

HUD did not rule on whether Wells Fargo violated any fair housing laws.

The NFHA has filed two similar complaints against Bank of America and U.S. Bank. Settlement of those two complaints is still pending.

Both Bank of America and U.S. Bank deny the allegations.

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