
HUD probes Wells Fargo for race-based lending, sparking legal and political clash
The Trump administration’s Department of Housing and Urban Development (HUD) has opened a civil rights investigation into Wells Fargo, accusing the bank of violating the Fair Housing Act by using race-based criteria in its mortgage lending programs. HUD Secretary Scott Turner labeled the bank’s efforts to boost Black homeownership as 'immoral' and 'un-American,' arguing that such practices discriminate against other applicants. Wells Fargo, which pledged $150 million to reduce rates for minority borrowers, declined to comment. The probe follows a 2012 discrimination settlement and a 2020 report alleging ongoing bias. Critics, including fair housing advocates, argue the bank was following federal Special Purpose Credit Program rules designed to remedy historic exclusion. The move signals a broader federal crackdown on diversity, equity, and inclusion (DEI) initiatives in the financial sector.












