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NAACP drops suit after Wells Fargo agrees to develop fair loan programs for minorities

Source: Los Angeles Times

The NAACP said it had dropped a lawsuit that accused Wells Fargo & Co. of unfairly steering African American borrowers into costly subprime mortgages while providing loans with lower fees and interest rates to white borrowers in similar financial circumstances. The civil rights group said it withdrew the suit after the bank agreed to work with it to develop programs to improve access to the best loans possible in minority neighborhoods and to ensure that borrowers don't get mortgages destined for failure. Wells Fargo made no payment or admission of wrongdoing. In a joint statement Thursday announcing the agreement, the San Francisco bank said it had worked for generations to lend responsibly in minority communities and regarded the agreement with the National Assn. for the Advancement of Colored People as "the next constructive step" toward that goal. The agreement enables the NAACP to review Wells Fargo's lending practices and make recommendations "to further improve credit availability to African American and diverse businesses and consumers, to further assist borrowers facing foreclosures, and to further promote financial literacy and education."

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