Federal judge dismisses Baltimore’s predatory mortgage lending suit against Wells Fargo Bank
By APThursday, January 7, 2010
Judge dismisses Baltimore suit against Wells Fargo
BALTIMORE — A federal judge has dismissed the city of Baltimore’s first-of-its kind lawsuit against Wells Fargo Bank N.A.
U.S. District Judge J. Frederick Motz explained Wednesday that the city’s claim that the mortgage giant triggered millions of dollars in damages with racist, predatory lending was not plausible.
The suit accused Wells Fargo of targeting black neighborhoods for bad loans that led to mass foreclosures, costing Baltimore tens of millions of dollars. The company denied the allegations. Wells Fargo Home Mortgage Co-President Cara Heiden says she is pleased by the decision.
Motz gave the city the option of filing a complaint limiting claims to specific housing vacancies or their effects by Feb. 3. City Solicitor George Nilson says counselors will discuss their options.
