Wells Fargo shares fall amid HUD probe into minority homeownership programs

Wells Fargo shares declined following reports that the Department of Housing and Urban Development (HUD) is scrutinizing the bank’s mortgage programs designed to increase Black and minority homeownership.

Housing Secretary Scott Turner criticized the bank’s race-conscious initiatives, describing the practice of dividing Americans by race as ‘immoral, unethical and un-American.’ The scrutiny focuses on Wells Fargo’s efforts to narrow racial gaps in homeownership, including a $210 million push and a 2017 commitment to provide $60 billion in mortgages aimed at supporting African-American homeowners.

While reports indicate HUD is reviewing these programs, some analysts note the distinction between a formal enforcement case and pre-enforcement scrutiny. The bank’s stock saw intraday declines of approximately 1.5% to 2.2% following the news.