Attorney General Lisa Madigan, DOJ settle racial discrimination suit against Wells Fargo for $175 million

Chicago, IL – July 13, 2012 – (RealEstateRama) — Attorney General Lisa Madigan together with the Department of Justice announced a $175 million nationwide settlement today with Wells Fargo over allegations that the bank steered borrowers of color into subprime loans more frequently than comparable white borrowers and charged borrowers of color more money for their mortgages than white borrowers were charged. The settlement will provide at least $15 million in restitution to impacted Illinois borrowers, while an additional $7 million will create a fund for down payment assistance. Currently, approximately 3,300 Illinois borrowers are estimated to be victims of discrimination by Wells Fargo.