Congress Told Wells Fargo Targeted Blacks

By Eleanor Boudreau

Memphis, TN – The testimony was part of Congress' ongoing look into the causes--and the effects--of the national foreclosure crisis. Wharton told members of the judiciary committee, "Memphis, inspired by the legacy of Dr. King, has taken on the updated fight for non-discrimination in housing."

Memphis and Shelby County have sued Wells Fargo under the Fair Housing Act. Wharton described the suit like this:

"We allege in that lawsuit that Wells Fargo targeted minority citizens and communities with noxious agreements that were rotten to the core. Simply put, predatory lending is to this generation what no lending was to blacks and Latinos a generation before."

Since 2000, foreclosures in the city of the Blues have increased by 180 percent.

"Some might say you're just singing the Blues," Wharton said, "were not, we're simply crying foul."

Wells Fargo refutes the city and county's claims and has released this statement:

"Wells Fargo believes collaborative problem-solving, not divisive litigation, is the key to reversing the national problem of home foreclosures. We stand by our fair and responsible lending practices."

Wharton concluded his testimony with this:

"If this situation is not remedied we will soon be moving to a different kind of dual society, on in which home ownership is a dream, the other in which it is a nightmare."