Wells Fargo Faces Racial Discrimination Investigation
Black Enterprise Magazine September/October 2018 Issue

The nation’s largest consumer lender Wells Fargo is set to undergo an investigation on the way it treats minority borrowers and the properties it owns in mostly African-American and Latino neighborhoods, according to The Huffington Post.

Sparked by allegations against the bank made by the National Fair Housing Alliance, the Department of Housing and Development confirmed this week that it will launch an investigation. The NFHA complaint accuses Wells Fargo of working to maintain and market bank-owned foreclosed properties in predominantly white communities far more persistently than it does in minority neighborhoods.

Neglect in maintenance issues such as detached gutters, broken windows or doors — all of which can affect a property’s value — is far more prevalent in black and Latino neighborhoods than in white.

The complaint follows a nine-month investigation in which the alliance evaluated the state of 1,000 bank-owned foreclosed homes in nine metro areas.

According to a report issued by the agency last week, investigators discovered “overwhelming” and “troubling” evidence that six of the nation’s major banks managed foreclosed homes in predominantly white neighborhoods differently than they do in others.

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Sade K. Muhammad

Sadé Muhammad is a news intern at BlackEnterprise.com. Before Black Enterprise, she was a fashion writer for Jonesmagazine.com, blogger and research intern for Niaonline.com, and a marketing and web intern for WPVI-TV/6ABC in Philadelphia, PA. Sadé is a senior magazine journalism major and honors student at the Newhouse School of Public Communications at Syracuse University. With a passion for empowerment and solidarity among women of color, she is developing a print and online lifestyle magazine catering to this very audience for her senior thesis. When she’s not writing, she is talking fashion, travel, and Knicks basketball.

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