Karl Heideck, a litigation specialist from Philadelphia, expects a landmark judgment in the lawsuit filed by the City of Philadelphia against Wells Fargo for predatory lending practices on May 15, 2017. The banking major was reportedly forcing both Hispanic and black borrowers into riskier loans that have higher interest rates, though they were eligible for low-risk mortgages. The bank also made it difficult for them to refinance their mortgage later which ultimately led to many foreclosures, per a data review for ten years by the city. Karl Heideck says that the bank with the unethical practices reportedly violated the 1968 Fair Housing Act. The city claims that the practices have caused unspecified monetary damages to it and its residents as the minority neighborhoods faced 4.7 times higher foreclosures comparing to white neighborhoods.
It is also further revealed that the city faced various issues with the unfair practices of the banking firm as Forty-three percent people of the city are black and another 12 percent are Hispanic. It saw many city residents losing their homes due to foreclosure, and that led to lower property values in the neighborhoods, frequent cases of vandalism, and increased crime rates. The lawsuit is adding more pains to Wells Fargo as it is yet to recover from the scandal of fake accounts created by bankers to achieve their sales target. Even the city of Miami is permitted to sue both Wells Fargo and Bank of America by the Supreme Court under the Fair Housing Act in early May. Karl Heideck explains that Wells Fargo created the process of redlining, a line drawn in the neighborhoods the bank do not wish to offer loans – a process of the 1930s.
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Karl Heideck is a Contract Attorney with Hire Counsel and known for expert litigation services with almost a decade of experience. He started his career with Conrad O’Brien as an Associate and worked with Pepper Hamilton LLP as a Project Attorney.
Karl Heideck did his Bachelor of Arts in English Literature and Language from Swarthmore College and completed his J.D. from James E. Beasley School of Law – Temple University. Karl Heideck is a specialist in complex banking litigation and various security fraud cases related to transactions issues, risk management, liquidity, and acquisitions.