BALTIMORE, June 4 (UPI) -- Two former Wells Fargo employees filed papers in court that said lenders at the bank routinely steered minority borrowers in Baltimore toward risky mortgages.
Sworn declarations in support of a lawsuit filed on behalf of the city said lenders redirected borrowers who qualified for better loans toward subprime contracts and joked they were "riding the stagecoach to hell," the Baltimore Sun reported Thursday.
The suit is asking for compensation to make up for increased foreclosures and vacant properties that reduced property taxes and led to increase crime in black neighborhoods, the newspaper said.
"We're trying to do what we can to get some kind of redress," City Solicitor George Nilson said in an interview.
U.S. District Court Judge Benson Legg has called for a June 29 hearing to determine if the case has enough merit to move forward.
Wells Fargo & Co. has denied the allegations, saying Baltimore was "thirsty for revenue." Company spokesman Kevin Waetke said the lawsuit "absolutely lacks merit."
"We absolutely do not tolerate team members treating our customers or others disrespectfully or unfairly, or who violate our ethics and lending policies," Waetke said.
