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Americans for Financial Reform exposed a pattern of racial disparities in Wells Fargo’s mortgage lending that is now in the public spotlight. Our analysis of lending data shows how Black, Latine, and Asian applicants face far higher denial rates than white borrowers.  The facts don’t lie. Wells Fargo underserves Black and Latine families and neighborhoods and rejects Black and Latine mortgage applicants at far higher rates. Wells Fargo denied 23% of Black applicants, 26% of Latine applicants, and 20% of Asian applicants, compared to just 10% of white borrowers and these disparities persisted at all income levels. Coverage like this shines a spotlight on Wells Fargo’s shortcomings in fully serving Black and Latine communities and makes it harder for them to brush their record aside. When these kinds of patterns of racial disparities become public, it creates pressure from regulators, lawmakers, and the communities the bank serves. That’s a critical way our work drives accountability. Taking on a bank like Wells Fargo takes real resources. They have teams of lawyers, lobbyists, and PR firms working to protect their image. We rely on research, organizing, and public pressure to cut through that and keep the focus where it belongs.
Equitable access to affordable and suitable home mortgage loans is critical for families to build household wealth, economic stability, and community development. Longstanding and ongoing racial barriers to home mortgage credit have perpetuated the yawning racial wealth gap. These kinds of racial disparities create barriers not just to homeownership but to building household wealth that families can use to invest in their futures and affects the distribution of opportunity across entire communities. These patterns raise fair lending and civil rights red flags that federal watchdogs are supposed to investigate and stop. Yet right now, the Trump-controlled Consumer Financial Protection Bureau is walking away from its responsibility to enforce fair lending laws and protect people. That makes this moment and our work especially important. Our role fighting Wall Street banks and exposing unfair, discriminatory and predatory practices is more important now than ever. We produce the research that withstands scrutiny, drive the coverage that institutions cannot sidestep, and keep these findings in front of decision-makers to force action. Let’s keep the spotlight on the racial inequities in the financial system — at Wells Fargo and everywhere else. -Patrick. Patrick Woodall (he/him)
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| Paid for by Americans for Financial Reform |
