Wells Fargo Under Scrutiny - Again. Regulators Uncover Discrimination in Mortgage Rate Discounts
- 5 months ago
Wells Fargo received an official notice from the Consumer Financial Protection Bureau about problems with its use of mortgage rate discounts, known as pricing exceptions. These discounts are used by mortgage lenders to help secure deals and typically lower a borrower's interest rate.
Wells Fargo later hired a law firm to interview mortgage bankers whose sales included high levels of pricing exceptions. Regulators conducted an industry review and found "statistically significant disparities" showing Black and female borrowers were discriminated against in receiving pricing exceptions, violating the Equal Credit Opportunity Act.
Wells Fargo later hired a law firm to interview mortgage bankers whose sales included high levels of pricing exceptions. Regulators conducted an industry review and found "statistically significant disparities" showing Black and female borrowers were discriminated against in receiving pricing exceptions, violating the Equal Credit Opportunity Act.