En esta noticia
Wells Fargo will provide up to $15,000 in direct assistance to homebuyers who meet certain income requirements. The bank reached a $100 million legal settlement that includes help with the down payment and mortgage closing costs and benefits residents in counties in California and dozens of other areas across the United States.
The settlement was approved by a federal judge and stems from a lawsuit filed by Wells Fargo shareholders in September 2022. It accused the bank of discriminatory mortgage lending practices against Black and Hispanic applicants, as well as of conducting mock job interviews with minority candidates for positions that had already been filled.
The bank did not respond to the discrimination charges, but said it was pleased to have reached a settlement.
Who qualifies to receive up to $15,000 from Wells Fargo?
Wells Fargo’s assistance is divided into two benefits that can be combined. To access either one, the applicant must get a mortgage through the bank and buy a home in one of the counties or areas included in the settlement.
The amounts and conditions are as follows:
Down payment assistance
- Up to $10,000 available for households with combined incomes of up to 120% of the median income of the county where the property is purchased.
Closing cost assistance
- Up to $5,000 for households with incomes of up to 80% of the county’s median income.
Many buyers may qualify for both benefits at the same time.
How does this settlement affect buyers?
The settlement comes after Wells Fargo was identified as one of the main lenders with racial disparities in mortgage approvals. In 2020, the bank was the only major lender to deny more refinancing applications from Black homeowners than it approved: only 47% of Black applicants and 53% of Hispanic applicants were approved, compared with 72% of white applicants.
For low- and moderate-income buyers, this settlement represents a concrete opportunity to become homeowners. Homeownership is considered one of the main long-term wealth-building mechanisms for families in the United States.
In which cities and states is Wells Fargo assistance available?
The program operates through Wells Fargo’s Homebuyer Access loan system, the channel through which the bank distributes mortgage assistance. According to the settlement, coverage extends to more than 50 metropolitan areas across the country, although the official list may vary.
These are the areas where the program is already active or in the process of being implemented:
California
- Anaheim-Santa Ana-Irvine
- Los Angeles-Long Beach-Glendale
- Oxnard-Thousand Oaks-Ventura
- San Diego-Chula Vista-Carlsbad
- Salinas
Northeast
- New York-Newark-Jersey City (NY-NJ)
- Allentown-Bethlehem-Easton (PA-NJ)
- Buffalo-Cheektowaga (NY)
- Montgomery County-Bucks County-Chester County (PA)
- Philadelphia-Camden-Wilmington (PA-NJ)
- Pittsburgh (PA)
South and Southeast
- Atlanta-Sandy Springs-Alpharetta (GA)
- Baltimore-Columbia-Towson (MD)
- Charlotte-Concord-Gastonia (NC-SC)
- Dallas-Ft. Worth-Arlington (TX)
- Memphis (TN)
- Oklahoma City (OK)
- Washington DC-Arlington-Alexandria (DC-VA-MD)
Midwest
- Minneapolis-St. Paul-Bloomington (MN-WI)
- Kansas City (MO)
- Omaha (NE)
Colorado
- Denver-Aurora-Centennial
To check whether a specific address qualifies, the bank recommends using the eligibility tool on Wells Fargo’s official website or contacting a bank mortgage advisor. The list of areas may be updated during the term of the program, which lasts a minimum of three years.
The listed areas correspond to Wells Fargo’s Homebuyer Access program, the distribution channel for the assistance. The settlement covers more than 50 areas in total; full coverage should be verified on the bank’s official website.