HUD opens fair-lending probe into Wells Fargo's race-based mortgage programs

HUD's Office of Special Investigations opened an inquiry into whether Wells Fargo's programs aimed at boosting Black homeownership violate the Fair Housing Act, sending CEO Charlie Scharf a records-preservation letter.

Why it matters: The probe turns the Fair Housing Act against race-conscious lending programs for the first time at this scale, testing whether special-purpose credit programs survive the administration's anti-DEI drive.

Data as of HUD letter sent to Wells Fargo CEO October 7, 2026; first reported by the Wall Street Journal

The Department of Housing and Urban Development’s Office of Special Investigations opened an inquiry into Wells Fargo’s mortgage programs aimed at boosting Black homeownership, sending CEO Charlie Scharf a letter Wednesday examining whether the bank “has violated or intends to violate” the Fair Housing Act’s ban on race-based discrimination in lending. HUD’s assistant secretary Craig Trainor said the bank’s 2017 and 2022 commitments — including a $210 million push for racial equity in homeownership and a Special Purpose Credit Program tied to refinancing — raise questions about race-based lending decisions, and directed the bank to preserve all records including personal-device messages. Housing Secretary Scott Turner called the practice “immoral, unethical and un-American”; Wells Fargo shares slid about 2 percent to $80 in afternoon trading after the Wall Street Journal first reported the probe. The bank declined to comment.

HUD opens fair-lending probe into Wells Fargo's race-based mortgage programs

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