Skip to content

Wells Fargo Sued by Black Borrower for Refinance ‘Redlining’

  • Bank accused of pushing many Black homeowners into foreclosure
  • Senators have called on regulators to probe company practices
Updated on

Wells Fargo & Co. was sued for discriminating against Black homeowners by relying on a modernized version of “redlining” that allegedly denied them lower interest rates through refinancing and forced them to pay more for loans.

The lawsuit, filed Friday in federal court in San Francisco as a proposed class action, argues that the practices in many cases pushed Black homeowners into foreclosure. Historically, redlining referred to the Federal Housing Administration’s refusal to insure mortgages in and near Black neighborhoods, and agreements that blocked or restricted the sales of homes to Black Americans.