Cook County accuses Wells Fargo of predatory lending

Cook County officials have filed suit against Wells Fargo alleging that the company's predatory and discriminatory lending practices led to the foreclosure crisis in Cook County and elsewhere.

The federal Fair Housing Act lawsuit says more than 55,000 potentially predatory and discriminatory mortgage loans Wells Fargo and its affiliates — Wachovia and Wold Savings Bank, among others — made to minority borrowers since 2000, a news release from the Cook County state's attorney's office said.

The suit blames Wells Fargo and its associates for 26,700 foreclosure filings — 71 percent of which took place in minority neighborhoods.

“The predatory lending crisis has caused tremendous tangible and intangible damage, particularly to African American and Latino communities in Cook County,” Cook County Board President Toni Preckwinkle said in a statement. “Predatory lending continues to exist in Cook County, and the lending institutions engaged in such practices must be held accountable.”

The county is seeking injunctive relief and monetary damages for the “segregative effect on the plaintiff's minority communities and neighborhoods leading to urban blight.”

The money recovered would offset the monetary damages the county sustained, including the erosion of its tax base, loss of property tax and other revenue sources, as well as the costs incurred by abandoned and vacant properties.

“It is our intent that this lawsuit, along with the two previously filed against other lenders, will eradicate the harmful and discriminatory lending practices that have devastated so many homeowners in Cook County, particularly those targeting minorities and women,” said State's Attorney Anita Alvarez.