HUD Investigates Wells Fargo Over Minority Homeownership Programs
The U.S. Department of Housing and Urban Development is investigating Wells Fargo for potential fair-lending law violations regarding race-based loan initiatives.
The United States Department of Housing and Urban Development has launched an investigation into Wells Fargo to determine if the bank violated the Fair Housing Act by favoring Black and other minority homeowners. The probe focuses on a decade of efforts to increase minority homeownership, including a 2017 commitment of $60 billion in loans specifically for Black homeowners.
HUD Secretary Scott Turner notified Wells Fargo CEO Charlie Scharf that the bank's strategy of sorting homeowners and offering different terms based on race is immoral, unethical and un-American. This investigation is part of a wider Trump administration crackdown on diversity, equity, and inclusion programs in the corporate sector. HUD officials have indicated that similar initiatives at other financial institutions are also under review.
