Wells Fargo Wins Dismissal of Predatory Lending Cases in Chicago, Los Angeles, but Fails to Settle FCA Suit with DOJ
July 23, 2015
Wells Fargo won key victories last week with the dismissal of two lawsuits in Chicago and Los Angeles alleging reverse redlining in the cities’ minority neighborhoods, resulting in high foreclosure rates, reduced property values and lost property tax revenues. The lawsuits accused Wells Fargo of targeting minority areas in the two cities with higher-cost loans, even though they could not afford such loans. Eventually, many borrowers defaulted on their mortgages and lost their homes to foreclosures. This, in turn, left many vacant homes throughout neighborhoods, driving down property values and costing counties and cities billions of dollars in efforts to eliminate urban blight. In Chicago, a federal district court judge said...
Christopher Stanley, a security engineer at SpaceX, is the first member of Elon Musk’s Department of Government Efficiency to join a GSE board.
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