NAACP Ends Mortgage Lawsuit With Wells Fargo
The ongoing battle between the NAACP and Wells Fargo is officially over.
A federal lawsuit was filed against the bank accusing it of disproportionately selling African-American and Hispanic borrowers high-cost, subprime mortgages, while white borrowers with similar incomes received mortgages with more favorable terms.
Subrprime mortgages are often issued to people with less than favorable credit history.
The ongoing lawsuit caused several Black figures to terminate ties with the company, most recently Tavis Smiley who pulled out of his seminar deal with the business in September.
The Associated Press reports that the two entities reached an agreement and Wells Fargo has agreed to let the NAACP review its lending practices.
The civil rights group was not seeking monetary damages but rather a change in the mortgage lending practices of the bank.
NAACP President Benjamin Todd Jealous is confident in the agreement and tells The Associated Press that Wells Fargo pledged to follow the group’s principles on fairness and lending, which “ensure all borrowers get the highest quality credit vehicle appropriate for their circumstances and that guard against racial discrimination in lending.”