Illinois sues Wells Fargo, alleges racist mortgage practices

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CHICAGO (AP) - The state of Illinois is suing one of the nation's largest mortgage lenders for allegedly discriminating against black and Latino homeowners.

Attorney General Lisa Madigan filed the lawsuit against Wells Fargo Friday in Cook County Circuit Court.

The suit alleges that Wells Fargo sold the minorities high-cost subprime mortgage loans while white borrowers with similar incomes received lower-cost loans.

Madigan says in a release that the practice helped transform black and Latino neighborhoods into "ground zero" for subprime lending.

The lawsuit seeks to rescind the contracts entered into between Wells Fargo and the consumers allegedly discriminated against. It also calls on the court to grant full restitution to those consumers.

Wells Fargo denies race plays any role in how it does business. It released a statement Friday in reaction to the lawsuit. Wells Fargo says it's disturbed the attorney general chose to file a lawsuit that the company says is based on a mischaracterization of its commitment to fair and responsible lending.

It also says its pricing properly reflects the risk in transactions, including credit and property type.

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