Wells Fargo Prepping For Possible Racial Discrimination Lawsuit

Though it hasn’t been formally accused of anything by the government, Wells Fargo let it be known in a filing with the Securities & Exchange Commission that the Justice Dept. may soon be alleging the bank was involved in discriminating against minority mortgage applicants.

This news comes nearly a year after it was first revealed that the DOJ was investigating claims that Wells Fargo steered minority applicants into subprime mortgages.

In its SEC filing, Wells Fargo reiterated its belief that it did nothing wrong and that no charges should be brought against the bank.

Wells Fargo has already been penalized $85 million by the Federal Reserve over allegations that, among other charges, it pushed applicants who would have qualified for standard loans into risky adjustable-rate mortgages.

Last December, the DOJ reached a whopping $335 million settlement with Countrywide over charges that the lender’s policy was to push subprime loans on minorities, regardless of whether they would have qualified for a standard loan.

Wells Fargo discloses potential discrimination suit [Chicago Tribune]