Karl Heideck is a licensed attorney based in Pennsylvania. He has extensive experience practicing in the Greater Philadelphia Area. He has a strong focus on civil litigation. Karl Heideck recently took the time to explain one of the latest lawsuits to hit the renowned bank, Wells Fargo. The bank stands accused of employing predatory tactics targeted at minority mortgage borrowers.
Between 2004 and 2014, the bank allegedly advised qualified minority mortgage borrowers into taking high-risk and high-interest mortgage loans. Consequently, the bank was unwilling to refinance these loans forcing a high number of them into default and foreclosure. This is in blatant violation of the Fair Housing Act of 1968.
At the same time, white mortgage borrowers with similar credit ratings received low-interest, low-risk loans. The action resulted in more homes in black and Hispanic neighborhoods being foreclosed. The city is claiming damages. It also wants the bank compelled to stop discriminating against minority borrowers. More than half of the city population consists of black and Hispanic communities.
The city contends that the bank’s predatory practices have negatively affected the city’s communities. Notably, property values have gone down, and crime rates have gone up.
Wells Fargo is already facing another scandal where the bank’s employees used customer details to create fake accounts inflating their sales targets. The city is enjoying precedence after the Supreme Court recently ruled against Wells Fargo and Bank of America in Miami under the same act. Karl Heideck explains that redlining, the act of zoning up neighborhoods according to ethnicity and race is illegal. The bank has maintained it has done business by the book and calls the claims unsubstantiated.
Karl Heideck attended Swarthmore College and graduated in 2003. He then went on to Temple University where he graduated with a law degree in 2009. He has a strong focus on civil litigation, contract law, and risk management. Karl Heideck consults for Grant & Eisenhower PA. He oversees discovery and review of cases related to the mortgage crash of 2008. He has also previously worked for the law firms of Conrad O’Brien and Pepper Hamilton.
Karl Heideck is passionate about compliance and risk management. He has extensively written on the subject and legal developments affecting Philadelphia on his blog.
Find more about Karl Heideck: http://www.wayn.com/profiles/tinkdnuos