Wells Fargo Response to New York City Mayor Adams and Comptroller Lander

Rhea-AI Summary

Wells Fargo (NYSE:WFC) expressed disappointment over New York City officials' allegations of discrimination, asserting that their practices align with GSE guidelines and do not discriminate based on race. The bank highlighted its leadership in mortgage lending to Black families, noting significant increases in refinancing loans in recent years. In addition to financing affordable housing projects, Wells Fargo has raised its headcount in New York, contrasting with other companies that have reduced their presence. The firm remains committed to addressing racial equity in homeownership.

Positive

• Largest lender for Black families in 2021, surpassing next three banks combined.
• 83% increase in refinancing loans to Black homeowners in 2020 compared to 2019.
• 88% increase in refinancing loans to Black homeowners from 2020 to 2021.
• Funded twice as many loans to Black customers in 2020 compared to the next largest lender.
• $1.3 billion investment in affordable housing projects in New York City.

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• None.

SAN FRANCISCO--(BUSINESS WIRE)-- Wells Fargo & Company (NYSE:WFC) today issued the following statement responding to New York City Mayor Eric Adams and Comptroller Brad Lander.

(Photo: Wells Fargo)

“We are deeply disappointed that Mayor Adams and Comptroller Lander would publish a press release like this based solely on a news report. More specifically, we are deeply disturbed by irresponsible allegations of discrimination that we believe do not stand up to scrutiny. We are confident that we follow relevant GSE guidelines in our decision making and that our underwriting practices are consistently applied regardless of a customer’s race or ethnicity. We do not believe that these claims are based on factual analysis. We welcome the opportunity to correct the record with city officials.

In 2021, Wells Fargo was the largest bank lender of purchase and refinances to Black families and this is consistent with our performance over the last decade (2011 – 2020), in which Wells Fargo helped as many Black families purchase homes as the next three largest bank lenders combined.

In addition:

• Wells Fargo helped more Black homeowners refinance their mortgages in 2020 and 2021 than any other bank.
• The 83% increase in the company’s refinance loans to Black homeowners in 2020 compared with 2019 also was by far the biggest gain among the largest banks.
• In 2021, Wells Fargo increased that total by 88% compared to 2020.
• In 2020, if you include loans originated and loans purchased from correspondent sellers, Wells Fargo funded twice as many loans overall to Black customers as the next largest bank funder.

Unfounded attacks on Wells Fargo by the city stand in stark contrast to the significant long-term investments Wells Fargo has made including $1.3 billion through the New York City Housing and Development Corporation to finance more than 92 affordable housing projects; $33 million in Open for Business Fund grants to Community Development Financial Institutions and non-profits; and $19 million to support nonprofits in all five boroughs. While some other large companies have been shrinking their New York presence, Wells Fargo has meaningfully increased its headcount over the past 12 months.

Minority home-ownership and access to financing is a significant problem in this country, and Wells Fargo has been and remains committed to being a leader in taking action to help close this and other racial equity gaps.”

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is the leading middle market banking provider in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 37 on Fortune’s 2021 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo

Cautionary Statement About Forward-Looking Statements

This news release contains forward-looking statements about our future financial performance and business. Because forward-looking statements are based on our current expectations and assumptions regarding the future, they are subject to inherent risks and uncertainties. Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov

News Release Category: WF- CF

View source version on businesswire.com: https://www.businesswire.com/news/home/20220408005613/en/

Government Relations & Public Policy

Robert Sumner, (202) 941-4717

Robert.Sumner@wellsfargo.com

Source: Wells Fargo & Company

FAQ

What did Wells Fargo say about discrimination allegations in New York City?

Wells Fargo stated they are disappointed by allegations of discrimination from New York City officials, asserting that their practices comply with relevant guidelines and do not discriminate based on race.

How has Wells Fargo performed in lending to Black families?

Wells Fargo was the largest lender for Black families in 2021 and helped more Black homeowners refinance their mortgages than any other bank.

What financial investments has Wells Fargo made in New York City?

Wells Fargo has invested $1.3 billion through the New York City Housing and Development Corporation for affordable housing projects.

How much did Wells Fargo increase its mortgage refinancing loans to Black homeowners in 2021?

Wells Fargo increased its refinancing loans to Black homeowners by 88% in 2021 compared to 2020.

What is Wells Fargo's commitment regarding racial equity?

Wells Fargo remains committed to addressing racial equity in homeownership and closing financing gaps.