A federal judge dismissed a city of Los Angeles lawsuit accusing Wells Fargo & Co. of violating the federal Fair Housing Act by engaging in predatory mortgage lending practices targeting minority borrowers.
In a 28-page ruling Friday, U.S. District Judge Otis Wright II said the "undisputed facts" show that Wells Fargo, the nation's largest mortgage lender, did not violate the law during the two years in which the statute of limitations applied.
Part of the city's suit focused on minority borrowers winding up more frequently than whites in Federal Housing Administration loans, which are aimed at first-time and marginal borrowers.