DES MOINES - September 14, 2010
Today U.S. District Judge J. Frederick Motz of Maryland dismissed, for the second time, the lawsuit that the City of Baltimore filed against Wells Fargo in 2008 alleging the company’s lending practices led to foreclosures that harmed the city.
“We have contended from the beginning that the challenges Baltimore faces cannot be attributed to the small number of loans Wells Fargo foreclosed in the city,” said Cara Heiden, co-president of Wells Fargo Home Mortgage. “Even the city has acknowledged that long-standing crime, unemployment and socioeconomic issues have contributed to the city’s problems. We remain committed to working with city and state leaders to help revitalize Baltimore by addressing issues related to abandoned properties. We also will continue to do our part to lessen the impact of foreclosures on communities in Baltimore and across the nation by working with our customers to reach affordable home payments wherever possible.”
On Jan. 6, 2010, the Court dismissed Baltimore’s lawsuit for the first time, but provided the city with an opportunity to file a narrower, amended complaint that addressed only the economic impacts associated with Wells Fargo’s foreclosures in Baltimore. In its original complaint, the city disclosed Wells Fargo was responsible for less than one-half of one percent of the 30,000 vacant properties in Baltimore. By comparison, Baltimore’s own Housing Department has reported that 10,000, or one-third, of the vacant properties are owned by the city.
About Wells Fargo
Wells Fargo Home Mortgage is the nation’s leading mortgage lender and services one of every six mortgage loans in the nation. A division of Wells Fargo Bank, N.A., it has a national presence in mortgage stores and banking stores, and also serves the home financing needs of customers nationwide through its call centers, Internet presence and third-party production channels.
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 10,000 banking stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With more than 278,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked #19 on Fortune’s 2009 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.