HUD Examines Wells Fargo’s Minority Homeownership Programs

The U.S. Department of Housing and Urban Development is examining whether Wells Fargo’s efforts to expand Black and minority homeownership violated federal fair-lending laws, according to a report describing a letter sent to the bank’s chief executive. The inquiry is not a finding of wrongdoing, and its scope and outcome have not been made public. The letter, reportedly sent to CEO Charlie Scharf on October 7, said HUD would assess whether Wells Fargo’s mortgage programs favored Black or other minority borrowers in violation of laws including the Fair Housing Act. The agency’s detailed allegations and the programs under review remain unclear. The account of the letter has not been independently verified by Reuters. Wells Fargo declined to comment on the reported inquiry. HUD did not immediately respond to a request for comment. No finding that the bank violated the Fair Housing Act had been announced in the reporting. The review concerns initiatives Wells Fargo established to address disparities in homeownership. In 2017, the bank pledged to lend $60 billion to help at least 250,000 Black homeowners by 2027.