The US Department of Housing and Urban Development is examining whether Wells Fargo complied with fair-lending laws in programs aimed at expanding homeownership among Black Americans.
The Wall Street Journal reported that the review followed a letter from HUD Secretary Scott Turner to Wells Fargo Chief Executive Charlie Scharf. The letter reportedly said the bank may have sorted homeowners by race and offered different products or terms. HUD confirmed it had opened an investigation on October 7.
In 2017, Wells Fargo pledged $60 billion in lending to help at least 250,000 African-Americans become homeowners by 2027. The bank declined to comment on the report. Reuters said it could not independently verify its details.
The department is also reviewing similar initiatives at other banks, the Journal reported. The inquiry comes as the Trump administration steps up its campaign against diversity, equity and inclusion programs.