DOJ: Wells Fargo Intentionally Steered African-American Borrowers Into Expensive Subprime Loans

The Justice Department’s Civil Rights Division is preparing to file a lawsuit against Well Fargo bank for allegedly shunting thousands of African-American borrowers into subprime mortgages when they should have qualified for less expensive loans. News of DOJ’s probe comes just one week after Wells Fargo agreed to pay an $85 million settlement after a similar lawsuit was brought by the Federal Reserve alleging that the bank preyed upon over 10,000 borrowers.