(WMC-TV) – Wells Fargo is sending $7.5 million to the Mid-South as part of a lawsuit settlement involving deceptive and discriminatory practices.
The settlement came from a lawsuit the lending giant had with Memphis and Shelby County. Both mayor's accused the company of predatory lending in 2009.
Memphis and Shelby County sued under the Fair Housing Act alleging that Wells Fargo pushed sub-prime loans on African Americans who qualified for better loans.
"It allowed the city to pursue the issue of the damage that was visited to us as a results of the practices of predatory lending," said City of Memphis Attorney Herman Morris.
Of the 7.5 million sent to the Mid-South, $4.5 million will assist families with down payments and home renovations in certain area. Up to $15,000 will be given as grants to families who qualify.
Of the other $3 million, $2.4 will go to Memphis, and $600,000 will go to Shelby County. It'll pay legal fees and fund neighborhood programs earmarked through various city and county initiatives
Wells Fargo will also make $425 million available to local borrowers over a five year period. That is roughly the same amount the bank normally lends but the deal designates $125 million for low and moderate income borrowers.