The U.S. Department of Justice is investigating allegations that Wells Fargo discriminated against African American borrowers, according to news reports. The allegations assert that the bank directed African-American borrowers to high-interest, subprime mortgages.

The DOJ is preparing a lawsuit against the bank, which is negotiating a settlement to avoid a public lawsuit, according to the Huffington Post. In a statement to the Huffington Post, Wells Fargo said it practiced responsible lending. "We have a very strong commitment to serving all customers along the credit spectrum, and we do so without bias."

The DOJ's investigation echoes a suit filed by the city of Baltimore against the bank, accusing it of targeting predominantly black neighborhoods with bad loans. Wells Fargo has denied the allegations.

Wells Fargo, the nation's largest home mortgage lender, recently agreed to pay $85 million to settle a civil suit claiming that the bank pushed borrowers into subprime mortgage loans, or falsified loan documents. As part of the suit the bank admitted to no wrongdoing.

Department Of Justice Investigates Wells Fargo For Discriminatory Lending Allegations [Huffington Postvia The Consumerist]

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