Wells Fargo will be furthering their efforts toward racial equity in homeownership. According to a press release, the bank giant has pledged $210 million to support minority families as they navigate homeownership.
“Wells Fargo has long been a leader in lending to minority families. These efforts are an important next step and will help close the homeownership gap between white and minority families created by decades of systemic inequities,” said Kristy Fercho, CEO of Wells Fargo Home Lending, according to a press release. “We are taking meaningful action by reimagining the homeownership journey to support minority families in realizing the dream of homeownership.”
Wells Fargo will allocate $150 million to reduce refinancing costs and to ensure minority homeowners have access to more affordable mortgage rates. Wells Fargo’s action will be supported by a Special Purpose Credit Program (SPCP). Minority homeowners who are serviced currently by Wells Fargo will receive support to refinance their mortgages. In addition, the banking giant will be on the lookout for Black homeowners in need of a refinance product. Wells Fargo will track SPCP’s progress and disclose findings annually.
$60M Will Support Wealth Opportunities Restored Through Homeownership Grants
What’s more, Wells Fargo will team up with the National Urban League and UnidosUS to expand its efforts for the newest initiative alongside additional programs. The partnership will also support home buying readiness, counseling, and work towards eliminating barriers blocking Black and Hispanic customers from navigating their homeownership journey.
The remaining $60 million will support the “Wealth Opportunities Restored through Homeownership” (WORTH) grants which will be distributed to 40,000 minority homeowners by 2025 through the Wells Fargo Foundation. The WORTH grants will also fund public-private partnerships doing the groundwork to create a solution for homeownership gaps.