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HUD investigates whether Wells Fargo mortgage programs violate the Fair Housing Act
HUD said it is reviewing Wells Fargo’s Special Purpose Credit Program and racial equity initiatives, which the agency connects to the bank’s stated 2017 and 2022 commitments to expand Black homeownership.
HousingWire reports that the U.S. Department of Housing and Urban Development has launched an investigation into Wells Fargo’s mortgage lending policies tied to its Special Purpose Credit Program and racial equity homeownership initiatives for Black borrowers.
HUD said the initiatives may violate the Fair Housing Act, and it is focusing on Wells Fargo’s 2017 and 2022 commitments to increase homeownership among Black borrowers and advance racial equity through an SPCP.
In a statement, HUD Secretary Scott Turner said dividing Americans based on race is immoral, unethical, and un-American, and he added that Wells Fargo employees involved in race-based decision-making should be ashamed.
The report says Wells Fargo did not immediately respond to a request for comment, and it notes the bank’s 2017 commitment to lend $60 billion to qualified African American consumers for home purchases by 2027.