Wells Fargo will pay $125 million to African American and Latino borrowers who were allegedly discriminated against in their loan process. Wells Fargo has stopped funding independent brokers this past Friday as the loans that were considered to be unfair and biased were originated through these brokers.
Wells Fargo was accused of leading about 34,000 minorities into sub prime mortgages with higher interest rates and fees, according to the Department of Justice. The large lender has agreed to pay a total of at least $175 million to settle the case.
In addition to the $125 million to paid, Wells Fargo will be giving $50 million in homeowner assistance grants in numerous U.S. metropolitan areas. These grants can be use as renovation financing, down payments and closing costs.
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