WASHINGTON (AURN News) — Programs designed to help Black families become homeowners are facing scrutiny from the Trump administration, and civil rights advocates warn the investigation could discourage banks from offering similar assistance.
The Department of Housing and Urban Development announced Wednesday that it is investigating Wells Fargo’s initiatives to expand Black homeownership.
HUD Secretary Scott Turner said lending decisions based on race may violate the Fair Housing Act. The investigation has not established a violation.
In 2017, Wells Fargo pledged $60 billion in mortgage lending to help create at least 250,000 Black homeowners by 2027.
But the National Fair Housing Alliance says the Equal Credit Opportunity Act expressly permits special-purpose credit programs to address longstanding barriers to lending. The organization warns that HUD’s investigation could discourage lenders from offering similar programs in underserved communities.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @ebonymcmorris & @aurnonline.
