Wells Fargo faces housing probe over Black homeownership lending
Citing a senior official, the newspaper said HUD Secretary Scott Turner plans a full investigation of the bank’s public statements, and that the agency is examining similar efforts at other lenders.
What did Wells Fargo commit to Black borrowers?
In February 2017, Wells Fargo pledged $60 billion in lending to create at least 250,000 African American homeowners by 2027.
It later backed a special purpose credit program (SPCP), a type of lending program authorized under the Equal Credit Opportunity Act to serve disadvantaged groups, with a $150 million commitment for Black borrowers.
The bank leaned further into that strategy with its 2023 decision to shrink home lending and focus on bank customers and minority communities.
“As the largest bank lender to Black and Hispanic families for the last decade, we remain deeply committed to advancing racial equity in homeownership,” Kleber Santos, then CEO of consumer lending at Wells Fargo, said at the time.
