Trump Administration Targets Wells Fargo $60 Billion Pledge To Boost Black Homeownership

The U.S. Department of Housing and Urban Development (HUD) is investigating Wells Fargo over programs designed to expand homeownership among Black Americans. The probe comes as the Trump administration has moved to dismantle diversity, equity, and inclusion (DEI) initiatives in government and the private sector.

HUD Secretary Scott Turner announced the investigation on Wednesday, saying the agency is examining whether Wells Fargo’s mortgage initiatives violated the Fair Housing Act by offering different mortgage products or terms based on race. The inquiry centers on programs and commitments the bank made over nearly a decade to increase Black homeownership.

“Even if Wells Fargo did not violate the law, its practice of dividing Americans based on race is immoral, unethical and un-American,” Turner said in a statement. The secretary added that “Wells Fargo and all of its employees” involved in race-based decision-making “should be ashamed of themselves.”

“The Fair Housing Act forbids racial discrimination in housing. It does not say: discriminate, so long as the discrimination is called a ‘special purpose credit program’ and justified as advancing ‘racial equity in homeownership,’” added Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor.

Wells Fargo launched the initiative in 2017 to help Black Americans build generational wealth and close the racial wealth gap through homeownership. The bank pledged to provide $60 billion in loans to help create at least 250,000 Black homeowners by 2027. According to Reuters, the bank later introduced additional initiatives intended to support minority homeowners and racial equity in housing. The bank had reached about 40% of its original $60 billion lending commitment and helped refinance about 5,100 customers when it commissioned a racial-equity assessment in 2023, according to the Wall Street Journal.

The investigation comes as President Donald Trump takes a harder line on corporate DEI policies as HUD officials review similar programs at other banks to address longstanding disparities in lending and homeownership.

Wells Fargo did not immediately comment on the reported investigation.

For now, the probe underscores a growing tension for corporate America: how banks can address persistent racial gaps in access to capital while navigating an increasingly restrictive regulatory environment around race-based financial programs.

“Federal regulators, HUD included, put in writing that these programs were legal,” National Fair Housing Alliance Executive Vice President Nikitra Bailey told Scotsman Guide, citing reporting in the investigation.

That debate is likely to continue as regulators, banks, and civil rights advocates confront a changing fair-lending landscape—and as Black families continue to navigate the nation’s persistent homeownership gap.

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