The U.S. Department of Housing and Urban Development is considering an investigation into Wells Fargo programs aimed at expanding homeownership among Black Americans, The Wall Street Journal reported, citing a department letter.
The department will examine whether the bank's programs may have violated fair-lending laws, the newspaper reported. A letter sent to Wells Fargo chief executive Charlie Scharf on Oct. 7 reportedly described the bank as “sorting” homeowners and offering different products or terms based on race. Reuters said it could not independently verify the Journal's report.
Wells Fargo declined to comment, and the department did not immediately respond to a Reuters request. In 2017, the bank said it would lend $60 billion to help at least 250,000 African Americans become homeowners by 2027.
The Journal reported that HUD Secretary Scott Turner plans a full investigation into Wells Fargo's statements. The agency is also reviewing similar initiatives by other banks, according to the newspaper. The potential probe comes amid the Trump administration's wider scrutiny of diversity, equity and inclusion programs.