HUD opens fair-lending investigation into Wells Fargo over Black homeownership programmes
The Department of Housing and Urban Development told Wells Fargo it will examine whether the bank's Black homeownership programmes broke fair-lending laws. Housing Secretary Scott Turner called the bank's practice "immoral, unethical and un-American".
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The story, neutrally told
Mixed · 2The Department of Housing and Urban Development (HUD) opened an investigation into Wells Fargo on Wednesday 7 October, sending a letter to the bank saying it would examine whether Wells Fargo violated fair-lending laws such as the Fair Housing Act. Raw StoryL “The Department of Housing and Urban Development sent a letter Wednesday to Wells Fargo CEO Charlie Scharf saying it would examine whether the bank violated fair-lending laws” Read at Raw Story ↗ Washington ExaminerR “it would examine whether the bank violated fair-lending laws, such as the Fair Housing Act, by offering certain programs to black people” Read at Washington Examiner ↗ Mixed · 2According to the letter, as reported by the Wall Street Journal, the bank adopted a strategy of "sorting" homeowners and offering different products or terms based on race, which HUD says may violate the Fair Housing Act. Raw StoryL “accusing the bank of "sorting" homeowners and offering different products or terms based on race” Read at Raw Story ↗ Washington ExaminerR “HUD said Wells Fargo had adopted a strategy of “sorting” homeowners and offering different products or terms based on their race.” Read at Washington Examiner ↗ Mixed · 2Housing Secretary Scott Turner said: "Even if Wells Fargo did not violate the law, its practice of dividing Americans based on race is immoral, unethical and un-American," adding that employees who engaged in race-based decision-making "should be ashamed of themselves." Raw StoryL “"Even if Wells Fargo did not violate the law, its practice of dividing Americans based on race is immoral, unethical and un-American," said Housing Secretary Scott Turner.” Read at Raw Story ↗ Washington ExaminerR “Wells Fargo and all of its employees that engaged in race-based decision-making should be ashamed of themselves.” Read at Washington Examiner ↗
Left · 1Raw Story reported that a senior agency official said HUD is also reviewing similar initiatives at other banks. Raw StoryL “HUD is also reviewing similar initiatives at other banks, according to a senior agency official” Read at Raw Story ↗ Mixed · 2Wells Fargo's effort dates to 2017, when it pledged $60 billion in loans to create at least 250,000 new Black homeowners by 2027 and to diversify its home lending sales team. Raw StoryL “it pledged $60 billion in loans to help create at least 250,000 new Black homeowners by 2027” Read at Raw Story ↗ Washington ExaminerR “The bank also pledged to make its home lending sales team more diverse.” Read at Washington Examiner ↗ Mixed · 2In 2022 the bank expanded the effort with a $210 million programme to help Black clients lower mortgage rates and refinancing costs, citing "systemic inequities"; Raw Story says this followed a Bloomberg report that the bank rejected half of Black families' refinancing applications in 2020. In 2023 it announced a further $100 million for racial equity in homeownership. Washington ExaminerR “a 2022 program that allocated $210 million as part of an effort to help black clients lower their mortgage rates and reduce their refinancing costs”“Wells Fargo said it would invest an additional $100 million “to advance racial equity in homeownership,”” Read at Washington Examiner ↗ Raw StoryL “after a Bloomberg report found the bank had rejected half of all refinancing applications from Black families in 2020” Read at Raw Story ↗
Left · 1Raw Story reports the bank had reached about 40 percent of its lending goal by late 2023, refinanced about 5,100 customers, and has since gone quiet about the effort and removed a 2023 racial-equity assessment from its website. It cites Pew data that 24 percent of Black households owned homes in 2024 versus 73 percent of white households. Raw StoryL “By late 2023, Wells Fargo had reached about 40 percent of its $60 billion lending goal and helped refinance about 5,100 customers”“Only 24 percent of Black households owned their homes as of 2024, according to the Pew Research Center, compared with 73 percent of white households.” Read at Raw Story ↗ Mixed · 2Wells Fargo did not immediately comment to Raw Story and declined to comment to the Washington Examiner. The probe is part of the Trump administration's broader campaign against diversity, equity and inclusion programmes. Raw StoryL “Wells Fargo did not immediately comment.” Read at Raw Story ↗ Washington ExaminerR “Wells Fargo declined to offer a comment.”“The development marks the Trump administration’s latest effort to target diversity, equity, and inclusion programs” Read at Washington Examiner ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left1 outlet
- Framing
- Presents the probe as a hostile administration move against a bank trying to close the Black homeownership gap, and a possible start of a wider crackdown.
- Emphasis
- Homeownership gap data, the bank's lending record, Turner's sweeping condemnation and review of other banks.
- Leaves out or plays down
- Does not detail HUD's legal theory beyond 'sorting'.
- Charged language
- “hostile move”“opening shot of a wider crackdown”
Centre0 outlets
No centre outlet in our sources has covered this story yet.
Right1 outlet
- Framing
- Frames the story as an investigation into whether the bank illegally favoured minorities through DEI initiatives.
- Emphasis
- The bank's programmes and pledges, and the administration's wider DEI actions across agencies and the Justice Department.
- Leaves out or plays down
- Does not mention the senior official's statement that other banks are under review, or homeownership gap data.
- Charged language
- “illegally favored minorities”“DEI initiatives”
- For example
-
“whether it illegally favored minorities through DEI initiatives encouraging “racial equity” in homeownership” — Washington Examiner
What every side reports
- HUD sent Wells Fargo a letter on 7 October saying it would examine fair-lending compliance, including under the Fair Housing Act.
- HUD alleges the bank 'sorted' homeowners and offered different products or terms by race.
- Scott Turner called the practice 'immoral, unethical and un-American'.
- Wells Fargo did not comment.
Where accounts differ
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Nature of the probe
- Left
- A 'hostile move' against a bank seeking to boost Black homeownership, possibly the opening of a wider crackdown.
- Right
- An inquiry into whether the bank illegally favoured minorities through DEI initiatives.
Department of Housing and Urban Development organisation
Says it will examine whether Wells Fargo violated fair-lending laws by sorting homeowners by race; Secretary Turner condemns the practice whether or not it was unlawful.
“Even if Wells Fargo did not violate the law, its practice of dividing Americans based on race is immoral, unethical and un-American” — Raw Story
Wells Fargo organisation
Has declined to comment on the probe; earlier said its programmes aimed to close the homeownership gap created by 'decades of systemic inequities'.
“Wells Fargo declined to offer a comment.” — Washington Examiner
“help close the homeownership gap between white and minority families created by decades of systemic inequities.” — Raw Story
Left1 article
-
Trump official makes hostile move against bank for seeking to boost Black homeownership
Critical Treats the probe as a hostile administration move against a pro-homeownership effort, noting it may foreshadow a wider crackdown.
Centre0 articles
No coverage yet.
Right1 article
-
Wells Fargo faces federal investigation over black homeownership programs
Neutral Reports the probe as a question of whether DEI programmes illegally favoured minorities, within the administration's anti-DEI push.
- 7 Oct 17:48 First Raw StoryL Trump official makes hostile move against bank for seeking to boost Black homeownership
- 7 Oct 21:59 +4h 11m Washington ExaminerR Wells Fargo faces federal investigation over black homeownership programs
Times are when each article was published, or when we first saw it if the outlet gave no time.