Wells Fargo’s alleged discriminatory loan practices seem to be coming with consequences as New York City has announced it will no longer open new depository bank accounts with the company, according to an official letter.

AfroTech has been tracking the findings surrounding Wells Fargo’s lending practices, and as we just told you, information released by Bloomberg suggested half of the Black applicants who were looking to refinance their homes were rejected. More recently, we reported Wells Fargo received backlash for allegedly rejecting lower interest rates for Black homeowners leading to a proposed class-action lawsuit in San Francisco, CA.

In response, it appears New York City is taking a stand against Wells Fargo’s alleged actions in an official statement released Friday, April 8 by Mayor Eric Adams and Comptroller Brad Lander.

“As the Mayor and Comptroller of New York City, a diverse community where Black homeowners own and are the primary residents of more than a quarter of two-to-four person homes, we are both gravely concerned about the recent report in Bloomberg that Wells Fargo rejected over half of Black applicants seeking to refinance their homes in 2020 while approving over 70% of white applicants,” the letter read.

“These disparate mortgage practices, layered upon a checkered history of steering homeowners of color into subprime mortgages, rejecting mortgages in redlined neighborhoods, and numerous outstanding consent decrees pertaining to mortgage practices, require a swift response by both your bank and stakeholders. In light of this persisting track record of discrimination, New York City will not be opening any new depository accounts with Wells Fargo Bank, N.A. as we continue to investigate these troubling findings.”

Brad Lander

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