NFHA Statement on HUD’s Investigation of Wells Fargo
FOR IMMEDIATE RELEASE:
WASHINGTON, D.C.—National Fair Housing Alliance (NFHA) Executive Vice President Nikitra Bailey released the following statement on an investigation by Department of Housing and Urban Development (HUD) of Wells Fargo.
“Wells Fargo launched this program under federal rules that expressly allowed it. Congress wrote Special Purpose Credit Programs (SPCPs) into federal law 50 years ago to enable lenders to adopt programs to remedy the effects of historic barriers and exclusions from the lending market based on gender, race, and national origin. Federal regulators, HUD included, put in writing that these programs were legal. Investigating a bank for following the government’s own rules to create paths to address longstanding discrimination in lending is an abuse of the agency’s investigative authority and a transparent attempt to scare every lender in the nation away from their legal obligation to serve underserved communities. Past and present discrimination continues to unfairly limit access to homeownership, made worse as the nation currently experiences a fair and affordable housing crisis.
Publicly available data shows that SPCPs work, and they work for everyone. From 2022 to 2024, SPCPs backed by Fannie Mae and Freddie Mac helped nearly 58,000 people of all races afford homeownership and generated over $17 billion in economic impact. NFHA is in federal court challenging the Consumer Financial Protection Bureau’s rule that targets these programs for this very reason. We’ll keep fighting to protect them because today’s Black-White homeownership gap is wider than it was when the Fair Housing Act was passed in 1968. Addressing discrimination and the homeownership gap are not a zero-sum game, as nearly all net new homeownership growth is projected to come from Black, Latino, and other communities of color. By doing so, we could add trillions to our economy. More importantly, we would achieve the Fair Housing Act’s promise.”
Media inquiries: JGlover@NationalFairHousing.org.
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About the National Fair Housing Alliance
The National Fair Housing Alliance (NFHA) leads a coalition that works to build inclusive, well-resourced, and resilient communities; expand equitable opportunities; and end housing discrimination.