Wells Fargo faces potential probe over black home ownership commitments: Report
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The US authorities have claimed that Wells Fargo had “sorted” home owners and offered different products or terms based on their race.
PHOTO: AN RONG XU/NYTIMES
- Wells Fargo may face a US housing probe over programmes to boost black homeownership, after a HUD letter to CEO Charlie Scharf questioned fair-lending compliance.
- The bank pledged in 2017 to lend US$60 billion and help add at least 250,000 African-American homeowners by 2027, but HUD said it may have used race-based “sorting”.
- Secretary Scott Turner plans a full investigation, as the review adds to the Trump administration’s crackdown on DEI policies and may extend to other banks.
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Wells Fargo is facing a potential investigation from the Trump administration’s housing authority over programmes and commitments the bank made to increase home ownership among black Americans, the Wall Street Journal reported on Oct 7.
The Journal cited a letter from the Department of Housing and Urban Development sent to Wells chief executive Charlie Scharf on Oct 7. It will examine whether the bank violated fair-lending laws by favouring black or other minority home owners, the letter reportedly said.
Reuters could not independently verify the report. Wells Fargo, which is set to report third-quarter results next week, declined to comment. The Department of Housing did not immediately respond.
Wells Fargo has announced a series of measures over the years to increase lending to minority communities, including a 2017 commitment to lend US$60 billion (S$76.8 billion) to help add at least 250,000 African-American home owners by 2027.
The department’s letter said Wells Fargo had adopted a strategy of “sorting” home owners and offering different products or terms based on their race, according to the Journal.
Department of Housing Secretary Scott Turner plans a full investigation into Wells Fargo’s statements, the report said, citing a senior official. The agency, it added, is also reviewing similar initiatives by other banks.
The reported probe will add to the crackdown on diversity, equity and inclusion (DEI) policies at public and private organisations since US President Donald Trump took office.
Trump signed an executive order earlier in 2026, asking federal contractors and their subcontractors to eliminate DEI practices, drawing a lawsuit from Democratic state officials. REUTERS