Wells Fargo faces federal investigation over black homeownership programs

The Department of Housing and Urban Development (HUD) has launched an investigation into Wells Fargo's homeownership programs specifically designed for Black and minority borrowers. The probe focuses on whether these race-conscious mortgage initiatives, including a $210 million refinancing program and a $60 billion lending commitment, violate the Fair Housing Act. HUD Secretary Scott Turner has criticized the programs as exclusionary and discriminatory, while the investigation represents a shift in federal policy following the rescission of Biden-era guidance that previously encouraged such 'Special Purpose Credit Programs.'

The Department of Housing and Urban Development (HUD) has launched an investigation into Wells Fargo's homeownership programs specifically designed for Black and minority borrowers. The probe focuses on whether these race-conscious mortgage initiatives, including a $210 million refinancing program and a $60 billion lending commitment, violate the Fair Housing Act. HUD Secretary Scott Turner has criticized the programs as exclusionary and discriminatory, while the investigation represents a shift in federal policy following the rescission of Biden-era guidance that previously encouraged such 'Special Purpose Credit Programs.'