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HUD launches investigation into Wells Fargo over Black homeownership efforts
HUD sent Wells Fargo CEO Charlie Scharf a letter saying the probe will examine whether the bank violated the Fair Housing Act in its nearly decade-long efforts to expand Black homeownership.
The U.S. Department of Housing and Urban Development is initiating an investigation into Wells Fargo’s mortgage lending efforts aimed at supporting Black homeownership, according to Bisnow.
HUD said federal officials will probe whether the bank violated the Fair Housing Act through its attempts to boost minority homeownership, and it sent a letter to Wells Fargo CEO Charlie Scharf on Wednesday.
Bisnow reports that in 2017 Wells Fargo announced plans to commit $60 billion in loans to add at least 250,000 Black homeowners by 2027.
The article also cites that Wells Fargo later unveiled a $210 million effort in 2022 to expand racial equity in residential lending after a Bloomberg investigation found Black borrowers applying to refinance received significantly lower rates than white borrowers.
Bisnow adds that HUD alleged that by 2022 the bank “fully embraced sorting homeowners” and offered different products or terms based on race, and it notes Wells Fargo removed “DEI” references from its website in 2025.