Wells Fargo faces regulator probe over efforts to boost black homeownership, WSJ reports

HUD is investigating Wells Fargo's mortgage lending practices under the Fair Housing Act. The probe follows the bank's commitments to lend $60 billion to Black homeowners and allocate $210 million for racial equity in homeownership. HUD questions whether Wells Fargo's policies may discriminate based on race. Wells Fargo is the 15th-largest mortgage lender in the U.S., with $15.3 billion in volume in the first half of 2023.

Wells Fargo shares fell 2% after reports of a federal probe into its minority homeownership programs, which may have violated fair lending laws. The investigation follows a 2017 commitment to $60B in loans for Black homeowners. Analysts rate WFC stock a Moderate Buy with a $98.90 average price target, implying 23% upside.

HUD is investigating Wells Fargo's efforts to boost Black homeownership for potential violations of fair housing laws. The bank has faced past criticism and legal action over discrimination allegations. Wells Fargo has made significant lending commitments to minority groups and settled a $175 million discrimination case in 2012.

Wells Fargo (WFC) is under investigation by HUD for potential fair lending law violations. The bank's dividend yield is 2.31% with a 26% payout ratio and 15.6% 3-year growth. WFC's GF Score is 83/100, indicating strong profitability and growth but weak financial strength. Institutional guru ownership is strong, while insiders have sold $10.1M in shares over the past year.

HUD is investigating Wells Fargo's decade-long homeownership programs for Black borrowers, examining potential Fair Housing Act violations. Wells Fargo offers a 2.31% dividend yield, a 26% payout ratio, and a 15.6% 3-year dividend growth rate. The stock is trading 3.8% below its GF Value of $83.22, with a GF Score of 83/100. Insider sales totaled $10.1M over the past year, while 28 premium gurus hold WFC shares, with mixed activity.

Wells Fargo (WFC) is under investigation by the Department of Housing and Urban Development for allegedly favoring Black or other minority homeownership, according to The Wall Street Journal. The probe relates to programs and commitments made by the bank over nearly a decade to increase homeownership among Black Americans. The regulator claims the lender offered different products or terms based on race.