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Homestore Linked to Wells Fargo Race Lawsuit - 6/26/2000 - Attorney Lawyer Legal Building Codes Zoning

Homestore Linked to Wells Fargo Race Lawsuit

Wells Fargo Home Mortgage, whose online home-search engine is the target of a race discrimination complaint by the Association of Community Organizations for Reform Now (ACORN), is linking its problems to Homestore.com, saying its community search service was provided by Homefair.com, a Homestore subsidiary.

Wells Fargo, based in San Francisco, announced Friday that it was disconnecting its Web site from the online home search engine, but did not specifically refer to the Dallas-based ACORN lawsuit.

The lawsuit complains that the Web site's "community search service" specifically named some Dallas neighborhoods as being "low income" or "distressed." Members of those neighborhoods are participants in the lawsuit.

ACORN attorney Michael Daniel called the search engine's descriptions "incredibly stereotypical of both minorities and whites." In his lawsuit, he noted the site said residents in "distressed neighborhoods" tended to "splurge on fast-food and chicken-dinner restaurant takeout."

In announcing its decision to disconnect from the home search tool, Wells Fargo pointed out that Homefair.com is used by thousands of real estate-related sites on the Web. Homefair.com reportedly gathers its information from CACI Marketing.

Homestore could not be reached for comment.

A Wells Fargo statement said the bank decided to disable the service, found at http://www.wellsfargo.com/mortgage/, "until we can determine if the editorial content is compatible with our demonstrated commitment to low and moderate-income and minority home buyers."

"We have no control over the data or content of this search tool, but merely facilitate access to the site through page links. However, we believe it's our responsibility to take this action to address the concerns expressed."

Although case law is thin on the issue, many Internet law experts believe that sites are responsible for policing links on a continuing basis to make sure that visitors are not accidentally referred to sites with unexpected, abusive or possibly illegal content.

ACORN member Ruth Isaac in Dallas said the new lawsuit evolved from existing actions against Wells Fargo, which has been challenged with several redlining lawsuits, contending the lender would not make loans in specific areas of communities if they had predominantly minority populations.

Wells Fargo Home Mortgage says it is among the nation's largest lenders to minority communities and has developed numerous programs to assist low and moderate income buyers.

Wells Fargo Home Mortgage was created three years ago when the company merged with Norwest Mortgage Company of Des Moines. Home Mortgage remains headquartered in Des Moines.


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