Wells Fargo wins dismissal of predatory lending lawsuits

Wells Fargo & Co. won the dismissal of two lawsuits on Friday that had accused the largest U.S. mortgage lender of violating the federal Fair Housing Act by engaging in predatory lending practices in Los Angeles and Chicago.

According to Reuters, the lawsuits brought by the city of Los Angeles and Cook County, Ill., which include Chicago, alleged Wells Fargo discriminated against black and Hispanic borrowers by leading them toward higher-cost loans. The suit claimed the process resulted in higher foreclosures and lower property tax collections, and that it necessitated the need for more spending to combat urban blight.

U.S. District Judge Otis Wright found no evidence of the alleged practices. The judge also faulted Los Angeles's litigation strategy, saying the city failed to identify ways in which Wells Fargo had misled borrowers.

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