SAN FRANCISCO–(BUSINESS WIRE)–Systemic inequalities in the United States have kept minority families from achieving their goals of home ownership and wealth building for too long. As the largest home mortgage banking originator and largest minority home mortgage banking originator over the past decade, Wells Fargo believes it has a responsibility to develop solutions that help close the gap. As the next step in fulfilling this responsibility, Wells Fargo today announced a new initiative to advance racial equity in homeownership across the country. The company will develop a Special Purpose Credit Program (SPCP) to help minority homeowners, whose mortgages are currently serviced by Wells Fargo, refinance those mortgages. Initially, through the program, Wells Fargo will identify eligible Black homeowners who could benefit from a refinance product. Wells Fargo will commit $150 million to lower mortgage rates and reduce refinancing costs to help these homeowners benefit more from refinancing. This program goes beyond typical loan programs and puts company money to work refinancing the homes of minority families. The company will assess its progress and publish it annually.
Wells Fargo will also:
Expand its partnerships with the National Urban League and UnidosUS to expand community outreach efforts for this and other programs, provide homebuying advice and preparation, and work to remove systemic barriers that prevent many black and Hispanic customers from achieving their homeownership goals.
Commit, through the Wells Fargo Foundation, $60 million in Wealth Opportunities Restored Homeownership (WORTH) grants that are expected to support 40,000 homeowners of color in eight markets that have large homeownership gaps between white families and minority families. WORTH grants will continue through 2025 and will fund public-private partnerships that develop and implement plans to address the root causes of these homeownership gaps.
“Wells Fargo has long been a leader in minority family lending. These efforts are an important next step and will help close the homeownership gap between white families and minority families created by decades of systemic inequality,” said Kristy Fercho, CEO of Wells Fargo Home Lending. “We are taking meaningful steps in reinventing the homeownership journey to help minority families achieve their dream of homeownership.”
In 2020, Wells Fargo was the largest bank lender for home loans to black families. This is consistent with the company’s performance over the past decade (2011-2020) in which it has helped so many black families buy homes like the three largest bank lenders combined.
Wells Fargo helped more black homeowners refinance their mortgages in 2020 than any other bank.
The 83% increase in the company’s refinancing loans to black homeowners in 2020 compared to 2019 was also by far the biggest gain among the biggest banks.
In 2021, Wells Fargo increased that total by 106% over 2020.
The company is a long-time leader in the housing finance industry:
Between 2017 and 2021, Wells Fargo helped more than 425,000 Black and Hispanic families achieve their homeownership goals with $110 billion in financing.
Since 2019, Wells Fargo has allocated nearly $400 million to help address the nation’s housing affordability crisis, including homelessness, available and affordable rentals, transitional housing, and homelessness. the property.
Since 2021, Kristy Fercho, CEO of Wells Fargo Home Lending, has served as President of the Mortgage Bankers Association (MBA) and leads the Affordable Homeownership Task Force within the Office of the Comptroller of the Currency’s REACh Project ( OCC), a project to promote financial inclusion through better access to credit and capital.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company with approximately $1.9 trillion in assets, proudly serves one in three American households and more than 10% of small businesses in the United States , and is the leading provider of middle market banking services. in the United States We offer a diverse set of banking, investment and mortgage products and services, as well as consumer and commercial finance services, through our four reportable operating segments: Consumer Banking and Loans, Commercial Banking, Corporate and Investment Banking, and Wealth Management and Wealth Management Banking. Investment management. Wells Fargo ranked No. 37 in Fortune’s 2021 ranking of America’s largest companies. In the communities we serve, the company focuses its social impact on building a sustainable and inclusive future for all by supporting housing affordability, small business growth, financial health and a low-carbon economy. carbon. Wells Fargo news, insights and insights are also available at Wells Fargo Stories.
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Press release category: WFPS