The U.S. Department of Housing and Urban Development (HUD) has launched an investigation into Wells Fargo programs designed to increase homeownership among Black Americans. In a letter to CEO Charlie Scharf, HUD said it will examine whether the initiatives violated fair lending laws by potentially favoring minority homeowners.
In 2017, Wells Fargo pledged to provide $60 billion in loans. The commitment aimed to help create 250,000 Black homeowners by 2027. The bank expanded the programs in 2022 after reports that it had a low approval rate for refinancing applications from Black homeowners.
Wells Fargo’s stock declined after news of the investigation.