Wells Fargo Bank, N.A., filed a legal motion this week seeking an extension to rebut three expert reports submitted by plaintiffs in a nationwide class action lawsuit alleging racial discrimination in the bank's mortgage lending practices against Black, Latino/Hispanic, and Asian homebuyers.
The expert reports, according to the motion, are a combined 8,382 pages, and nearly 19 GB of back-up data. They also allege that the plaintiffs will not make their experts available for depositions before rebuttal reports are due.
"Good cause exists to extend these deadlines, as they cannot reasonably be met under the circumstances given the scope of Plaintiffs’ expert reports and their refusal to make their witnesses available for deposition before Wells Fargo’s deadline to rebut those reports," attorneys for Wells Fargo argue in the brief.
In a motion filed before Federal Judge James Donato in the Northern District of California, Wells Fargo requested three additional weeks to respond to expert opinions presented by the plaintiffs. The bank cited the need for more time to understand the basis of the three expert opinions, expressing concerns over the evidence expected to be presented in support of claims affecting up to 750,000 potential class members.
The underlying lawsuit alleges that Wells Fargo systematically engaged in racial discrimination, resulting in the disproportionate denial and delayed processing of mortgage applications for Black and other minority applicants, as well as offering less favorable terms.
Dennis S. Ellis of Ellis George LLP, appointed by Judge Donato to lead the lawsuit, cited a Bloomberg News analysis published in March 2022 that found Wells Fargo, the third-largest bank by assets in the U.S., approved just 47% of Black homeowners who submitted refinance applications in 2020, compared to 72% of white homeowners.
Ellis called for swift action, stating that Wells Fargo had ample opportunity to address its discriminatory practices but failed to do so. The motion for an extension has drawn criticism from the plaintiffs' legal team, who argue that the bank's request for more time is unwarranted given its years-long history of discriminatory lending practices.
Wells Fargo's legal battles over its lending practices are not new. Last year, the Consumer Financial Protection Bureau (CFPB) raised concerns about the bank's use of mortgage rate discounts, citing "statistically significant disparities" in rates offered to Black borrowers. The CFPB ordered Wells Fargo to pay over $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations.
Civil rights attorney Ben Crump, serving as co-counsel on the matter, condemned Wells Fargo's behavior, emphasizing the significance of the case in seeking justice for Black applicants and homeowners affected by discriminatory lending practices.
