HUD investigates Wells Fargo over Black homeownership initiatives

, HousingWire, MPA Magazine, Bisnow, and The New York Times report that the U.S. Department of Housing and Urban Development has opened an investigation into Wells Fargo over mortgage initiatives meant to increase Black homeownership. HousingWire and MPA Magazine report that federal officials are examining whether the bank's race-based initiatives violate the Fair Housing Act. MPA Magazine and Bisnow report that federal officials notified Wells Fargo Chief Executive Charlie Scharf in a letter sent on Wednesday. [1][2][3][9]

HousingWire reports that the probe centers on commitments made by the bank in 2017 and 2022 to advance racial equity in homeownership through a Special Purpose Credit Program. HousingWire, MPA Magazine, and Bisnow both report that the investigation spans nearly a decade of bank programs intended to boost minority home ownership rates and refinance options. [1][2][3]

HousingWire reports that HUD Secretary Scott Turner described the practice of dividing Americans based on race as unethical and un-American in a statement. MPA Magazine reports that the probe signals how the Trump administration intends to address race-conscious mortgage programs under federal fair-lending law. [1][2]

Wells Fargo is a multinational financial services firm with approximately 2.0 trillion dollars in assets, serving more than 70 million customers globally. The firm operates as one of the Big Four banks in the United States alongside JPMorgan Chase, Bank of America, and Citigroup. [10][11]