1. Racist lending practices According to legal documents, Wells Fargo loan of-!cers referred to African-American customers as “mud people,” and to the subprime loans they sold them as “ghetto loans.”1

2. Discrimination Wells Fargo offered subprime loans to 47% of African-American borrowers compared to just 10% of white borrowers. 2

3. High-interest loans Wells Fargo may bring a new type of payday loan to Maryland. When calculated annually, these direct deposit loans carry as much as a 365% interest rate. 3

4. Say goodbye to free checking While local banks like M&T and PNC still have free checking with no minimum balance, Wells Fargo may penalize customers for lower balances. 4

5. High-pro!le lawsuits and investigations While the United States Department of Justice is in-vestigating Wells Fargo, the city of Memphis and the city of Baltimore have !led lawsuits against the bank for discriminatory lending practices.5

6. They are like Countrywide Wells Fargo offered subprime loans at a rate of 26%. This is almost the same rate as notorious Countrywide -- the poster child for the housing market collapse. From 2005 through 2009, Countrywide’s subprime lending rate was 31%. 6

1. “Bank Accused of Pushing Mortgage Deals on Blacks,” New York Times, 6/6/092. Federal Financial Institutions Examination Council, Home Mortgage Disclosure Act (HMDA) data. Includes owner-occupied 1- to 4-family homes. 3. “Consumer Advocates fear that more traditional banks will be o!ering payday loans,” Baltimore Sun, 8/22/114. “Watch out as banks raise fees to "ll revenue void,” Baltimore Sun, 2/13/115. “Well Fargo target of Justice Department Probe,” Hu!ngton Post, 7/26/116. Federal Financial Institutions Examination Council, Home Mortgage Disclosure Act (HMDA) data. Includes owner-occupied 1- to 4-family homes. 7. Testimony of Susan Sangree, Chief Solicitor, City of Baltimore Law Department, to House Judiciary Subcommittee on Commercial and Administrative Law. September 9, 2009. 8. “A review of Wells Fargo’s subprime lending,” Center for Responsible Lending, April 20049. Whelan, Robbie. “City changes tactics in suing Wells Fargo, focus is on impact, cost to Baltimore.” Baltimore Sun, 4/21/10; “Baltimore Mayor’s Race: Vacant Property,”

WBAL-TV, 8/11/1110. Candice Choi, “Wells Fargo rolls out "xed-rate student loans.” Associated Press Financial Wire, 6/8/11.

7. Taking advantage of under-served communities Wells Fargo saw Baltimore as an easy target for discriminatory lending. Minorities in the city — typically denied access to credit and subjected to years of racially segregated liv-ing patterns — were susceptible to predatory lending. 7

8. Predatory lending In a 2004 report, the Center for Responsible Lending found that Wells Fargo charged exces-sive fees and interest rates regardless of credit history; tricked borrowers into adjustable rate loans; and convinced people to re!nance loans at rates bene!cial to Wells Fargo. 8

9. Vacant properties drain resources A report released in June 2009 estimated that the annual cost per block for police and !re services increased $1,472 for every vacant property on that block. Baltimore has nearly 30,000 abandoned properties -- 16,000 struc-tures and 14,000 lots. 9

10. Risky student loans Wells Fargo is one of few banks in the United States to offer !xed-rate private student loans. These loans can be more expensive than federal student loans and interests rate vary — 7.75% to 14.25% — depending upon credit history. And unlike federal loans, deferments are given at the sole discretion of the bank. 10

Why Baltimore shouldn’t roll out the welcome wagon for Wells Fargo

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