The City of Philadelphia is at loggerheads with Wells Fargo & Company after it emerged that the bank has been violating the Fair Housing Act of 1968 by using suspicious yet predatory money lending practices aimed at the minority race of mortgage borrowers based in some cities in Philadelphia.
Karl Heideck, one of the best contract attorneys in Philadelphia takes a look at this case and explains it in details. According to Karl and the lawsuit filed by the City of Philadelphia, it is alleged that the lending bank offered loans at higher interest rates to Hispanics and black Americans even though the same groups of people were eligible for lower-interest rates and lower-risk mortgages. The City of Philadelphia also alleges that the lending bank also made it difficult for the borrowers to refinance their mortgages hence forcing them to foreclosure.
According to Karl Heideck, the act of issuing loans with higher interest rates and higher mortgage rates to a particular group of people is known as redlining. Redlining is an illegal act especially if it is found out that it was done based on racial segregation and ethnicity.
The City of Philadelphia claims that the higher interest rates capped on the loans resulted in higher crime rates and vandalism. Apart from this, the city also claims that its reputation regarding affordable housing was significantly hurt since many of the borrowers lost their houses due to their inability to repay back the loans.
Wells Fargo & Co. on its part has come out guns blazing and referred to the lawsuit as being bogus and filled with false information. Though the company has not yet filed a formal complaint against the city of Philadelphia, it remains to be seen if the company will survive this onslaught.
Karl Heideck is a contract attorney who currently works for the Grant & Eisenhower PA law firm. Karl Heideck graduated from the Temple University Beasley School of Law with a Juris Doctor in Law in the year 2009. Before joining Temple University, Karl Heideck had graduated with a Bachelor of Arts in English Language and Literature from Swarthmore College.
With more than eight years in the industry and his unmatched experience, Karl Heideck is no doubt your best match when you need legal counsel.