Wells Fargo settles foreclosure discrimination claim (MSN Money)

A housing group gets $27 million after saying that the bank took better care of seized properties in white communities than in those that were predominantly black or Latino.

Homeowners in certain neighborhoods who lived around foreclosed homes owned by Wells Fargo and U.S. Bancorp knew the institutions were discriminating against them and their neighbors. Now they're getting some payback.

The Chicago Tribune reports that the National Fair Housing Alliance and members in 13 cities across the country will receive $27 million from Wells Fargo to resolve a 14-month-old federal discrimination complaint. 

The groups charged that the bank took better care of the foreclosed properties it owned in white neighborhoods than those in African-American and Latino communities.

The alliance says the $27 million will be used to improve homeownership and stabilize neighborhoods in 19 cities. The consortium of private, nonprofit housing groups filed complaints with the Department of Housing and Urban Development against Wells Fargo and U.S. Bancorp in April 2012. Last fall, it leveled similar charges against Bank of America.

 

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