HUD Investigates Wells Fargo Over $150 Million Race-Based Lending Program
Updated
Updated · The New York Times · Oct 7
HUD Investigates Wells Fargo Over $150 Million Race-Based Lending Program
3 articles · Updated · The New York Times · Oct 7
Summary
A HUD letter to CEO Charles Scharf says Wells Fargo is under Fair Housing Act investigation for loan programs that allegedly favored minority applicants, including lower-cost refinancing for Black homeowners.
Craig Trainor, a HUD assistant secretary, cited Wells Fargo’s public promotion of race-conscious policies and warned the inquiry could widen to include the Justice Department.
Wells Fargo declined to comment; its shares fell 1.5%. The bank has already removed many references to the minority-focused initiatives from its website and past releases.
The case extends the Trump administration’s broader campaign against corporate diversity programs, after financial institutions had largely avoided its earlier reverse-discrimination scrutiny.