This is where the age-old stereotypes equating Black people with risk—an association explicitly drawn in red ink around America’s Black neighborhoods for most of the twentieth century—obscured the plain and simple truth: what was risky wasn’t the borrower; it was the loan. Camille Thomas, a loan processor, testified that “many of these customers could have qualified for less expensive or prime loans, but because Wells Fargo Financial only made subprime loans, managers had a financial incentive to put borrowers into subprime loans with high interest rates and fees even when they qualified for
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