ATLANTA — Attorneys are calling on Wells Fargo to address alleged racial inequities after a lawsuit claims the banking giant discriminated against its Black mortgage applicants. However, Wells Fargo called the claims "unfounded attacks" in a statement.
In a press conference in Atlanta Tuesday, Attorney Ben Crump called on Wells Fargo shareholders to adopt the Service Employees International Union (SEIU)'s motion for an independent racial equity audit.
Crump also urged other mayors to follow New York City Mayor Eric Adams' "unprecedented stance to say the City of New York will do no new accounts with Wells Fargo until they adequately address these inequities."
The lawsuit alleges Wells Fargo discriminated against its Black customers during the mortgage lending process, including redlining or denying loans. It also claims Black customers were charged higher interest rates.
Attorneys Ben Crump, co-counsel Linda Friedman and Suzanne Bish filed the class action lawsuit against Wells Fargo on Feb. 17 in the Northern District of California. It was amended on April 14.
“Homeownership is the heart of the American Dream, and Wells Fargo has pushed that dream out of reach for thousands of Black Americans with their blatantly discriminatory loan practices,” Crump said in a release. “Just as we’ve cried out against policing practices that kill Black lives, so we denounce Wells Fargo’s racially motivated banking practices that kill Black opportunity.”
In response to the press conference, Wells Fargo released the following statement in part:
“We are deeply disturbed by allegations of discrimination that we believe do not stand up to scrutiny. We are confident that we follow relevant government-sponsored enterprise (GSE) guidelines in our decision-making and that our underwriting practices are consistently applied regardless of a customer’s race or ethnicity. These unfounded attacks on Wells Fargo stand in stark contrast to the company’s significant and long-term commitment to closing the minority homeownership gap."
A release from Wells Fargo states it was the largest lender for home mortgages to Black families in 2020. The company added that has been consistent over the last decade when compared with the next three largest bank lenders combined.
However, a Bloomberg report from March states that fewer than half of Black applicants were approved by the bank lender.
Read more of Wells Fargo's statement on their website.