Karl Heideck On Wells Fargo Redlining
The article “Karl Heideck Explains the Lawsuit by Philadelphia Against Wells Fargo” is about how Wells Fargo offered risky loans to minorities and was then sued for its risky practices that affected people from 2004-2014.
Karl Heideck is a contract attorney that has practiced for more than a decade in law. He graduated in 2003 with a Bachelor of Arts degree at Swarthmore College and in 2009 got his Juris Doctor from Temple University’s James E. Beasley School of Law.
At one point, Karl Heideck worked for Pepper Hamilton LLP and also held an associate position at Conrad O’Brien. He offers multiple services including risk management, product liability, and employment proceedings.
Karl Heideck discusses in the article about what Wells Fargo said in regards to the allegations. According to the document, Wells Fargo disagrees that they ever used unfair practices in their loans to minorities.
Some of the evidence that was presented as proof of the allegations was that minorities with a FICO score of 660 or higher were given riskier loans than that of a white borrower with the same score. This caused the foreclosure rate in minority neighborhoods to increase, as well as decrease the living quality in those areas. It was made practically impossible for those minority borrowers to refinance their homes later on and would eventually just end up foreclosing. The issues presented because of Wells Fargo have hurt Philadelphia badly and has caused a higher rate of crime and lower neighborhood values.
As Karl Heideck gets into Wells Fargo more he brings up that not only is Wells Fargo being sued by the city of Philadelphia for redlining, the process of a bank not allowing a certain city to get loans because of race or ethnicity, but only two weeks prior the Supreme Court of the United States ruled that Miami could sue Bank of America and Wells Fargo under the Fair Housing Act. This came as a huge blow to Wells Fargo as they are still trying to recover from making fake customer accounts to meet a quota.
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