Wells Fargo staffers claim anti-Latino bias in predatory lending scheme

Wells Fargo & Co. was sued by current and former members of its bilingual mortgage sales team who claim the company discriminated against both them and its Hispanic customers in a predatory lending scheme.

The complaint was filed Friday in federal court in San Antonio as a proposed class action on behalf of more than 20 Spanish-speaking mortgage sales consultants "of Hispanic ethnicity or from Mexico or other Central and South American countries." 

Wells Fargo directed its bilingual team to steer customers away from products with no closing costs toward "predatory lending options" without disclosing the costs, in part by refusing to provide Spanish-language written materials, according to the complaint.

"Customers sometimes call into the bilingual team months after closing a refinance cash out, surprised to discover they have been charged substantial closing costs," according to the complaint. "Nevertheless, management instructs the bilingual team, 'Don't mention cash out.'"

The suit cites previous reporting by Bloomberg News showing that Wells Fargo rejected half of its Black applicants during the mortgage refinancing boom in 2020. This month, in response to a court order to pursue private mediation, lawyers for Wells Fargo and for borrowers told a judge they will work with a retired federal judge's mediation service to try to resolve lawsuits alleging widespread discrimination against Black homeowners.

Friday's complaint also alleges racism and discrimination by the bank toward its own employees. Wells Fargo refused to allow the bilingual team to join a pilot program that allows its mortgage consultants commissions regardless of their sales, according to the complaint. 

When the mortgage industry crashed last year, it decimated the income of employees on the bilingual team, as they were "not permitted to join the pilot program in equal numbers to the English team," according to the complaint.

The plaintiffs are seeking unspecified monetary damages from the bank.

Wells Fargo had no immediate comment on the suit.