"Racial Discrimination Probe Targets Wells Fargo Mortgage Lenders"
Originally Published 2 years ago — by CNBC
Wells Fargo, along with other banks, has been caught in an industrywide probe into mortgage pricing discrimination. Regulators have been investigating the use of loan discounts, known as pricing exceptions, which have raised concerns over possible violations of fair lending laws. The Consumer Financial Protection Bureau found that black and female borrowers received fewer pricing exceptions than other customers. Wells Fargo received an official notice from the CFPB regarding problems with its discounts, and an internal investigation is ongoing. Regulators have been cracking down on fair lending violations, launching multiple probes in recent years. The issue with pricing exceptions is that lenders have failed to properly track and manage their use, violating the Equal Credit Opportunity Act and Regulation B. Wells Fargo has adjusted its policies and now requires hard documentation of competitive bids.