Trump administration housing officials are investigating Wells Fargo over its decade-long efforts to increase Black homeownership, alleging potential Fair Housing Act violations. HUD sent a letter to CEO Charlie Scharf questioning whether the bank’s race-based lending strategies violated anti-discrimination laws. Wells Fargo committed $60 billion in loans by 2027 to add 250,000 Black homeowners, expanding the program in 2022 with direct refinancing initiatives.
Despite scaling back its mortgage business in 2023, the bank reiterated its racial equity pledge. In 2024, only 24% of Black households owned their homes versus 73% of White households, per Pew Research. HUD claims the bank engaged in "sorting" homeowners by race, calling the practice "immoral, unethical and un-American." Wells Fargo achieved about 40% of its $60 billion lending goal and helped refinance 5,100 customers, saving an average of $100 monthly.
The probe aligns with broader Trump administration scrutiny of DEI programs, following fines against IBM and Deloitte for similar practices. Wells Fargo has not commented on the investigation.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing