In an January 8, 2008 atricle, the Baltimore Sun reports that the city is filing suit against Wells Fargo Bank over what the City calims asunfaily markeing subprime mortgages to Black neighborhoods. Click this link for the article.
In a potentially groundbreaking lawsuit intended to stem foreclosures in Baltimore, Mayor Sheila Dixon's administration is suing a leading mortgage provider for what the city says has been a pattern of predatory lending in black neighborhoods.
The lawsuit, which the Dixon administration plans to file today in U.S. District Court, alleges that California-based Wells Fargo Bank sold higher-interest subprime mortgages to blacks more frequently than to whites and that the practice, known as reverse redlining, violates federal housing law.
Though Baltimore's lawsuit does not estimate the financial cost of the foreclosure crisis to the city, the city claims that is has lost tens of millions of dollars - in unrealized property tax revenue, added police and fire protection and legal costs - because of homes abandoned after foreclosure.
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