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Read next: Wells Fargo’s Black approval rate improves, but racial gap persists
In March 2020, Wells Fargo fell into hot water after Bloomberg found that the lender had rejected more than half of its Black applicants in the mortgage refinancing boom – the worst record among big lenders. In contrast, Wells Fargo approved 72% of White mortgage applicants in the same period.
Up until today, the lender doesn’t contest Bloomberg’s statistical findings, pointing to its more selective process and other factors such as credit scores.
“Until 1968, banks could deny mortgage loans based on a homebuyer’s race or neighborhood. Predominantly White communities could pass zoning restrictions designed to keep people of color out of neighborhoods,” Hale wrote. “It’s not just Black Americans experiencing the stiff hand by Wells Fargo’s mortgage application denials. Bloomberg looked through information available via the Home Mortgage Disclosure Act and found Wells Fargo was more sparing when it came to approving refinances overall by only approving 67% to Asian borrowers and 53% to Hispanic lenders.”
Read more: Wells Fargo wins early round in mortgage discrimination lawsuit
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