City Of Memphis, Shelby County Amend Lawsuit Against Alleged "Ghetto Loans" Peddler In Fair Housing Litigation

In Memphis, Tennessee, The Commercial Appeal reports:

• Memphis and Shelby County have filed an amendment to a federal lawsuit(1) against mortgage lender Wells Fargo, detailing for the first time how the company allegedly used “predatory and deceptive” practices locally that targeted African-Americans for risky subprime loans. The amended complaint includes new testimony from four former Wells Fargo employees in Memphis. In sworn statements the former employees describe how the company targeted African-Americans for subprime loans.(2)

For more, see Memphis and Shelby County detail case against Wells Fargo.

For the amended complaint, see City of Memphis, et ano. v. Wells Fargo Bank, N.A., et al.

(1) According to the story, the initial complaint, filed in December, included testimony from two former high-ranking Wells Fargo employees involved in a Baltimore, Md., suit who say Wells Fargo intentionally made bad loans to African-Americans. The employees, who worked out of Virginia and Maryland but are knowledgeable about the company's national lending practices, said Wells Fargo marketed subprime loans to predominantly African-American ZIP codes and that company officials referred to the loans as "ghetto loans."

(2) The amended complaint, unveiled Wednesday during a news conference at City Hall, also asks Tennessee Attorney General Robert E. Cooper Jr., to take action against the company under the state Consumer Protection Act, according to the story.