Trump administration probes Wells Fargo over efforts to boost Black homeownership

Key Points:

• The Department of Housing and Urban Development (HUD) is investigating whether Wells Fargo's programs aimed at increasing homeownership among Black Americans violate federal fair-housing laws, specifically the Fair Housing Act.
• HUD sent a letter to Wells Fargo CEO Charlie Scharf expressing concerns that the bank's race-based lending practices may be illegal and called such practices "immoral, unethical and un-American."
• Wells Fargo had committed in 2017 to lend $60 billion to help 250,000 African American homeowners by 2027 and expanded its program to refinance minority homes, aiming to close the homeownership gap.
• Despite scaling down its mortgage business and removing diversity and inclusion references in 2023, HUD emphasized that Wells Fargo's obligations depend on actual practices rather than public statements or website content.
• This investigation aligns with the Trump Administration's broader effort to reduce diversity, equity, and inclusion initiatives across government, education, and business sectors amid persistent disparities in Black homeownership rates compared to other racial groups.