Wells Fargo - Illegal Foreclosures in the Black and Brown Community and its’ Impact on Generational Wealth
Illegal Foreclosures in the Black and Brown Community and its’ Impact on Generational Wealth
-The Illegal Foreclosure Experience-
The State of Housing in Black America explores recent housing trends. Since 2007, nearly 8% of African Americans and Latinos have lost their homes to foreclosure compared to 4.5% of non-Hispanic whites at similar income levels.
The disparity ratio shows that African Americans are more than 70% more likely to have been foreclosed upon than non-Hispanic whites.
When I heard the Wells Fargo Mortgage commercial pertaining to “trust and making amends” for their past criminalities, on Black Urban Radio I felt sickened. They have been making consisted “errors” pertaining to their customers most precious and fundamental life enduring basic need – their security and long term investment – their home!
The public at large believe that when a home is fore closured upon, it is the fault of the home owner. I contend that there is a systemic and strategic “conspiracy” to plunder and destroy the generational wealth of the Black and Brown people of the next generation. I did paid my mortgage on two homes my home and father.
As a homeowner of nearly twenty years and the daughter of homeowners, the worst thing I did was to file bankruptcy with an incompetent attorney who value money more than her client well-being.
According to the 2010 American Community Survey, an African American family with the median income $33,578 based would need to save for 31 years for a 10% down payment for a house priced at the median. In 2004, homeownership rates have continued to fall for African Americans and there are projections that rates will drop to 40% in the near future down from a high of 50%.
As new families form and seek housing, and as baby boomers downsize their homes and younger generations are faced with tight mortgage credit markets, the demand for rental housing is growing. Further, demographic shifts such as higher birth rates and immigration among African Americans and Latinos, are adding even more demand on the already tightening rental housing market. National Association of Real Estate Brokers (NAREB) suggests a broader response to rebuilding the housing finance system.
They recommend focusing on borrowers as opposed to focusing entirely on institutions, ensuring adequate credit for rental housing development, and establishing a housing and community infrastructure bank.
African Americans have been greatly affected by the housing crisis and the community’s wealth-building potential is at risk. Nevertheless, the African American community continues to grow both in population and purchasing power, highlighting the need for housing policies that will benefit a diverse America.
February 2017, Wells Fargo announced on a $60 billion lending commitment to create at least 250,000 African American homeowners by 2027, directly addressing the lower homeownership rates in the African American community.
The financial commitment serves to help a community that is slated to significantly increase. According to the U.S. Census Bureau, by the year 2024, 75% of the expected 14 million new households (renters and owners) in the U.S.
will be Black and Brown people.
February 2016, I was in a convoluted war of words with Wells Fargo using the Consumer Financial Protection Bureau as an intermediary for nearly a year. After I filed Chapter 13 Bankruptcy, but I continued to pay the mortgage on my father’s home. The payments were a credit to my home. Wells Fargo crossed out my father’s loan number and placed my loan number on my checks which caused a two-year investigation and $97,000 in trustee fees, but moreover, I knew that my home would be in jeopardy once the bankruptcy was finalized.
According to the National Low Income Housing Coalition, the African American community, including high rates of foreclosures and falling rates of homeownership, the impacts of these trends for current and future generations, and concludes by advocating for improved policies to address the needs of housing in Black America.
The report was commissioned by the NAREB. According to the report, African Americans have lost over half of their wealth since the beginning of the recession through falling homeownership rates and loss of jobs. Further, African American homeownership peaked in 2004, indicating that the housing crisis hit this community earlier than the nation as a whole.
In January 2018, my bankruptcy was dismissed. I did not have the courage to finish the necessary steps.
Once I was threatened with contempt of court and perjury charges, I did not have the strength to fight for my father’s house. I just wanted to save my home. When my bankruptcy ended, the trauma of the foreclosure began.
March 14, 2019, my home was sold in a foreclose sale, and I was evicted on May 28, 2019. My home of 20 years was foreclosed upon, it was not that I did not pay my mortgage.
It was because of Wells Fargo Mortgage committed forgery, illegal forced foreclosure, and mortgage fraud. The issues of forced foreclosures and mortgage fraud in my case has not been addressed;
However, the road to loan modifications, more loan modifications, Keep Your Home, NACA, and the long stream of vultures who came to eat the caucus the dead bones of the traumatized homeowner. Therefore, I will address in the courts and in the media.
On February 27, 2018, as documented by Matt Egan@MattEgan of CNN, The city of Sacramento accused Wells Fargo of a "long-standing pattern and practice" of illegal lending in minority and low-income communities that reduced home values, limited property tax revenue and drove up foreclosures. There seems to be a systemic approach to disintegrate the generation wealth through home ownership in the Africa American Community.
"Wells Fargo's discriminatory lending practices place vulnerable, underserved borrowers in loans they cannot afford," said the lawsuit, which was filed March 2, 2018.
The city said that four anonymous former mortgage employees at Wells Fargo confirm that the bank "intentionally steered minority borrowers into higher-cost loans because of their race or ethnicity." Why is Wells Fargo, still allowed to finance homes let alone be a lending institution with their continuous corruption?
Wells Fargo discriminated against black and Latino homebuyers in Sacramento, California, by pushing them into more expensive mortgages than white borrowers, according to a federal lawsuit that cites former employees.
Black Wells Fargo borrowers in Sacramento with credit scores above 660 are 2.8 times more likely to receive a high-cost or high-risk loan than comparable white borrowers, the lawsuit said. Latino borrowers were 1.8 times more likely, the suit said. The lawsuit came weeks after the Federal Reserve rocked Wells Fargo with an unprecedented punishment for "widespread consumer abuses," including the infamous fake account scandal. The tough sanctions prevent Wells Fargo from growing until the Fed believes the bank has cleaned up its act.
As you can see, with the sanctions and bad press Wells Fargo has not clean up their act.
The legal community that I have encountered is ignorant or just do not care about the plagued of the African American Community in this legal stance. They are among the vultures who are picking at the dead bones of the distressed homeowner.
As for me my father's home, it was aired to my father from his mother. Thus, it was aired to me by my father. That home was a historical landmark and had been in our family since the 1920s.
Although it did not go through probate, my father with a 4th-grade education, did the best he could to keep that house in our family. Although, Wells Fargo had prematurely placed his home in foreclosure. A Wells Fargo official statement in writing notably, “It would be in foreclosure anyways.”
Therefore, as my evidence I have returned checks to me without any explanation, and Wells Fargo Mortgage never sends out any notification of pre-foreclosure activity. My father’s home was sold in bankruptcy court.
Moreover, my home of twenty years was sold and I was evicted. As I plundered the ramifications of these circumstances: the denial of loan modifications, foreclosure, eviction, homelessness, shame and despair, and the endless vultures who plagued me - the desperate homeowner with false information and promises is merely capitalism at work.
While several indicators point to an improving housing market, there are several challenges on the road to recovery, especially for low-income Black and Brown people of color. Ascertaining the American Dream, obtaining the income qualifications and FICO scores, is merely the first challenge of homeowners. It is not only your home but an investment.
As your equity accumulates, the threat of a corrupt systemic attack of illegal foreclosure, fraud, and forgery are factors that were used to foreclosure upon my home of 20 years. As Human Beings, Americans, people of God, bank presidents and CEOs - you have got to do better.
Written by Janet Robinson, MPA
The Illegal Foreclosure Experience-
Podcast and Television Show
Product or Service Mentioned: Wells Fargo Mortgage.
Reason of review: Poor customer service.
Preferred solution: Full refund.
Wells Fargo Cons: Customer service experience, Being lied to by customer service, Pressure.