Wells Fargo, Memphis resolve mortgage lawsuit

MEMPHIS, Tenn. (AP) -- Wells Fargo says it has reached an agreement with Memphis and Shelby County on a discriminatory lending practices lawsuit filed against the bank.

Wells Fargo released a statement Tuesday saying the city and county have agreed to dismiss the suit filed in late December 2009 alleging that the mortgage lender targeted minority communities for predatory practices that resulted in high-risk loans that led to a higher number of foreclosures in those areas.

The governments claimed that the foreclosures caused extreme blight, vacancies, reduced property values and lower tax revenues.

In return for the lawsuit's dismissal, Wells Fargo agreed to invest $7.5 million in the city and county for mortgage down payment and home renovation assistance and to advance local programs related to improving economic vitality and increasing financial literacy.

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