Obtaining mortgage aid by claiming “discrimination” has become a high art. The problem is that someone always has to pay. Just ask Wells Fargo & Co. On July 12, the San Francisco-based bank, the nation’s largest mortgage originator, agreed to spend $175 million to settle accusations by the U.S. Department of Justice (DOJ) that for several years it steered black and Hispanic homebuyers toward high-cost loans, so it could charge excessive interest and fees. The agreement, in which Wells Fargo admitted no wrongdoing, ostensibly will defray borrower losses and expand homeownership opportunities in lower-income areas. More likely, it will raise the cost of borrowing for everyone, lower underwriting standards and keep lawyers employed. It amounts to a shakedown. And in the context of the big picture, $175 million is on the low side.
The Justice Department’s Civil Rights Division, often in conjunction with nonprofit civil rights organizations and other parties, … Read More ➡