LOS ANGELES, March 19, 2022 /PRNewswire/ — Ellis George Cipollone O’Brien Annaguey LLP has filed a complaint on behalf of an individual plaintiff and a class action against Wells Fargo Bank, N.A. and Wells Fargo Home Mortgage (collectively “Defendants” or “Wells Fargo”), alleging racial discrimination towards Black applicants for home mortgage refinancing through the bank’s Home Mortgage lender service.
“The disproportionate number of Black applicants that were denied refinancing by Wells Fargo is staggering, especially when compared with those who were approved by other banks,” said Dennis Ellis, lead counsel for the individual plaintiff and the proposed class.
The complaint alleges that the Defendants have continued to discriminate against Black American home loan applicants despite the nation’s recent efforts to rectify the historically unfavorable conditions preventing Black Americans from achieving full rights to financial benefits for U.S. citizens, such as home ownership.
Some of the discriminatory practices include the ongoing, modern-day “redlining” or refusal to insure mortgages in and near Black neighborhoods, delay and/or denial to refinance loans at lower interest rates for Black homeowners, and the high rate of rejection of credit applications from qualified Black Americans through automated algorithms and machine learning systems. A recent study found that Wells Fargo approved only 47% of Black applicants for refinancing, where all other banks on average approved 71% of Black applicants. Hence, the unfair acts by Wells Fargo, one of the top lenders in the country, has forced Black homeowners to pay more than non-Black homeowners, resulting in foreclosure in many cases, alleges the lawsuit.
“Reflecting its sordid history of racial bias, Wells Fargo reached this disproportionate level purposefully,” Ellis added. “It did so through its brazen use of multiple intentionally discriminatory algorithms and other race-driven lending practices, the disparate…
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