On May 15, the city of Philadelphia filed a lawsuit against Wells Fargo. In response to this lawsuit, Karl Heideck wrote an article explaining the circumstances that led to the filing. The foundation for the lawsuit is that the city of Philadelphia claims that Wells Fargo steered Hispanic and African American borrowers into riskier loans with higher stakes rather than the more conservative loans that they were qualified to receive.
Philadelphia is a large city with a high minority population. The city is alleging that these risky loans resulted in borrowers who could not afford to pay them back. When these same borrowers applied for refinancing, many of them were denied and their houses were foreclosed. These foreclosures resulted in lower home values, higher crime rates, and more frequent vandalism in the affected areas. This lawsuit was filed on the heels of a similar one in Miami where the Supreme Court ruled that the city of Miami could sue lenders under the Fair Housing Act.
Wells Fargo is accused of a having engaged in a practice called redlining. This term refers to a practice that began in the 1930s where lending institutions would draw red circles around neighborhoods containing residents to whom banks did not want to extend credit. When redlining is practiced according to a borrowers race or ethnicity it is prohibited by the constitution and is therefore illegal. Wells Fargo is accused of this very practice.
Karl Heideck is a graduate of Swarthmore College and Temple Law School. He currently serves as a contract lawyer listed by Hire Counsel since April 2015. Prior to taking this position, Karl Heideck worked in the greater Philadelphia area as an associate with Conrad O’Brien and as a project attorney for Pepper Hamilton LLP. These positions gave him the experience and knowledge that has taken him to where he is today.
As a contract attorney, Karl Heideck offers services ranging from compliance consulting to risk management advisement to employment proceedings and anywhere in between. His expertise in a variety of different fields is what sets him apart from the litany of other attorneys in Philadelphia and across the state. Karl Heideck is also a prolific writer and he writes his own blog at https://karlheideck.wordpress.com/.
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