Wells Fargo reportedly faces potential probe over Black homeownership commitments
WFC•Wells Fargo faces a potential investigation over programs and commitments to increase Black homeownership, a report said. The bank committed in 2017 to lend $60 billion to help add at least 250,000 African American homeowners by 2027.
1. Potential investigation
The Department of Housing and Urban Development is considering an investigation into Wells Fargo’s programs and commitments to increase homeownership among Black Americans. A letter to CEO Charlie Scharf said the agency would examine whether the bank violated fair-lending laws by favoring Black or other minority homeowners.
2. Past commitments
Wells Fargo has announced measures to increase lending to minority communities, including a 2017 commitment to lend $60 billion to help add at least 250,000 African American homeowners by 2027. The letter reportedly said the bank adopted a strategy of “sorting” homeowners and offering different products or terms based on race.
3. Broader review
Housing Secretary Scott Turner plans a full investigation into the bank’s statements, a senior official said. The agency is also reviewing similar initiatives by other banks. Wells Fargo declined to comment, and the Department of Housing did not immediately respond.
