Wells Fargo Faces HUD Probe Over Efforts To Boost Black Homeownership

The Department of Housing and Urban Development is probing Wells Fargo to determine whether its efforts to boost Black homeownership violate fair-housing laws.HUD sent a letter to Wells Fargo CEO Charlie Scharf stating that it would examine whether the mortgage giant violated fair-lending laws with efforts to favor Black or minority homebuyers. The investigation will focus on the special purpose credit program it announced to promote homeownership after repeated criticism of its practices.Under the Trump administration, HUD has refocused its enforcement of housing-discrimination laws. But it has also pushed to hamstring and stop so-called diversity, equity, and inclusion programs. Many of those were encouraged by Democrats and the Biden administration.In a statement, HUD Secretary Scott Turner said the investigation was focused on "race-based decision making." The letter said Wells Fargo "fully embraced sorting homeowners—and offering different products or terms on those products—based on race."“Even if Wells Fargo did not violate the law, its practice of dividing Americans based on race is immoral, unethical and un-American,” Turner said. “Wells Fargo and all of its employees that...