“There was always a big financial incentive to make a subprime loan wherever one could.”
-affadavit of Wells Fargo Loan officer
Wells Fargo’s top-producing loan officer testified in court some of the more unsavory and nefarious lending practices WFC engaged in.
Her sworn testimony involved how the bank targeted heavily African American areas for shoddy mortgages and subprime loans, even for people with “sterling credit ratings.” This arose due to Justice Department investigations into Wells Fargo’s alleged fair-lending violations.
Structurally, Wells Fargo provided the sort of misaligned financial incentives that helped to create so much of the crisis.
Regardless, that is a hell of a chart!
Source:
Ex-loan officer claims Wells Fargo targeted black communities for shoddy loans
Ylan Q. Mui
Washington Post, June 12
http://www.washingtonpost.com/business/economy/former-wells-fargo-loan-officer-testifies-in-baltimore-mortgage-lawsuit/2012/06/12/gJQA6EGtXV_story.html
What's been said:
Discussions found on the web: