In a new paper, housing advocates and grassroots activists single out Wells Fargo for its foreclosure activity in California and the negative impact it has borne on the state's communities and economy at large. The Alliance of Californians for Community Empowerment, the Center for Popular Democracy, and the Home Defenders League report that Wells Fargo writes the most mortgages in California, with 11,616 of them currently in the foreclosure pipeline. The groups contend that the bank's foreclosures are disproportionately hurting African-American and Latino neighborhoods and ultimately could cost the state $20 million in lost tax revenue. Adjusting mortgage balances to reflect the lower market value of homes in foreclosure -- a practice known as principal reduction -- would help tremendously, according to the report, which alleges that Wells Fargo balks at providing this kind of assistance. The organizations recommend that the bank provide greater disclosure about its foreclosures, such as racial and geographical makeup of loan holdings. Wells Fargo, for its part, characterizes its principal reduction efforts as "aggressive" and dismisses the report as an effort to question its "longstanding track record as a fair and responsible lender and servicer."