CHARLOTTE — The Department of Housing and Urban Development is investigating Wells Fargo over programs meant to boost Black homeownership.
In a letter sent to the bank’s chief executive, Charlie Scharf, HUD said it’s looking at whether the bank violated fair-lending laws by favoring Black or other minority homeowners, The Wall Street Journal reported.
According to the U.S. Department of Justice, fair-lending laws are protected under the Fair Housing Act, a Civil Rights-era law that prohibits banks and other lenders from discriminating based on factors like race, religion, or sex.
[ ALSO READ >> Wells Fargo program helps neurodivergent employees build lasting careers ]
Wells Fargo has not commented on the probe.
The agency says it’s also reviewing similar initiatives at other banks.
About 74% of homeowners in North Carolina are white, according to the latest U.S. Census data. Just over 14% of homeowners are Black, while 5% are Hispanic.