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Posted on 15th Jun 2012 @ 1:27 PM
Memphis and Shelby County have agreed to dismiss their redlining lawsuit against Wells Fargo. In return, Wells Fargo agreed to invest $7.5 million in Memphis and Shelby County, including providing grants totaling $4.5 million for mortgage down payment and home renovation assistance.
Individuals who want to buy homes and live in Memphis and Shelby County can qualify for grants worth up to $15,000 each under the Wells Fargo home ownership program that is set to kick off later this year with a large-scale home ownership event in Memphis. To qualify, prospective homebuyers must have a family income not above 120 percent of the area median income and must complete an eight-hour homebuyer education session with an approved non-profit. They also must agree to live in the home for five years. If they move sooner, they will have to return a pro-rated portion of the down payment or renovation grant.
Wells Fargo also set a five-year mortgage lending goal of $425 million for the city and county, including $125 million in home purchase lending to low- and moderate-income borrowers.
In addition, as part of its agreement with Memphis and Shelby Country, Wells Fargo agreed to contribute an additional $3 million to advance local initiatives and programs related to improving economic vitality, preserving public safety, and increasing financial literacy.
“The condition of the local housing market continues to challenge Memphis and Shelby County significantly, as unoccupied homes and excessive housing inventory weigh heavily on communities,” said Memphis Mayor A C Wharton, Jr. “We are pleased to announce this collaborative partnership to get more of these houses reoccupied and increase neighborhood stability.”
“While many efforts are already under way, it’s evident that more must be done to help our communities recover from the housing crisis,” said Shelby County Mayor Mark Luttrell. “We’re glad that Wells Fargo decided to engage in a dialogue that led to this collaboration.”
“We agreed that it was in the best interests of everyone involved to work together rather than to continue to be involved in a protracted legal fight,” said Leigh Collier, Wells Fargo regional president for the Mid-South, which includes Memphis.
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