May 15 (Reuters) - The City of Philadelphia on Monday sued Wells Fargo & Co, accusing the largest U.S. mortgage lender of intentionally steering minority borrowers into higher-cost home loans than it offered white borrowers.
In a complaint filed in Philadelphia federal court, Philadelphia faulted Wells Fargo’s “long history” of “redlining” in Philadelphia, and said the bank’s practices reflected a “total breakdown of appropriate internal controls” similar to its recent creation over unauthorized customer accounts.
The lawsuit accused Wells Fargo of violating the federal Fair Housing Act, and seeks a variety of damages. Wells Fargo was not immediately available for comment. (Reporting by Jonathan Stempel in New York)