Wells Fargo Response to Press Conference on Unfounded Allegations

Rhea-AI Summary

Wells Fargo (NYSE: WFC) addressed allegations of discrimination made by plaintiffs' attorneys during a press conference, asserting confidence in their adherence to GSE guidelines and equitable underwriting practices. The company highlighted that in 2020, it was the largest bank lender for home mortgages to Black families, significantly surpassing competitors. Wells Fargo increased refinancing loans to Black homeowners by 83% from 2019 to 2020, with a further increase of 106% in 2021. To support minority homeownership, the company committed $210 million, including $150 million to assist with mortgage rates and refinancing costs.

Positive

• Largest bank lender for home mortgages to Black families in 2020.
• 83% increase in refinance loans to Black homeowners in 2020 compared to 2019.
• 106% increase in refinancing loans to Black homeowners in 2021 compared to 2020.
• $210 million commitment to support minority homeownership.

Negative

• None.

SAN FRANCISCO--(BUSINESS WIRE)-- Wells Fargo & Company (NYSE:WFC) today issued the following statement responding to comments made at a press conference by plaintiffs’ attorneys Ben Crump, Linda Friedman, and Suzanne Bish.

View of city buildings from above. (Photo: Wells Fargo)

“We are deeply disturbed by allegations of discrimination that we believe do not stand up to scrutiny. We are confident that we follow relevant government-sponsored enterprise (GSE) guidelines in our decision making and that our underwriting practices are consistently applied regardless of a customer’s race or ethnicity. These unfounded attacks on Wells Fargo stand in stark contrast to the company’s significant and long-term commitment to closing the minority homeownership gap.

In 2020, Wells Fargo was the largest bank lender for home mortgages to Black families and this is consistent with our performance over the last decade (2011 – 2020), in which the company 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 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 106% compared to 2020.

Minority homeownership and access to financing is a significant problem in this country, and Wells Fargo has been and remains committed to taking action to help close this and other racial equity gaps. In fact, earlier this month, the company announced a $210 million commitment to help minority families realize their dream of homeownership, including $150 million to lower mortgage rates and reduce refinancing costs for eligible homeowners who could benefit from a refinance product. This program goes beyond the usual lending programs and puts the company’s own money to work refinancing Black families’ homes.”

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 a 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/20220425005718/en/

Media

Beth Richek, 704-374-2545

Beth.Richek@wellsfargo.com

Investor Relations

John Campbell, 415-396-0523

john.m.campbell@wellsfargo.com

Source: Wells Fargo & Company

FAQ

What is Wells Fargo's response to recent discrimination allegations?

Wells Fargo stated they are deeply disturbed by the allegations and believe they follow GSE guidelines in their practices.

How much did Wells Fargo commit to support minority homeownership?

Wells Fargo committed $210 million to help minority families with homeownership, including $150 million aimed at lowering mortgage rates.

What was Wells Fargo's performance in lending to Black families?

In 2020, Wells Fargo was the largest bank lender for home mortgages to Black families, surpassing the next three largest banks combined.

What increase did Wells Fargo see in refinance loans to Black homeowners in 2020?

Wells Fargo experienced an 83% increase in refinance loans to Black homeowners in 2020 compared to 2019.

How did Wells Fargo's refinance loans to Black homeowners change in 2021?

In 2021, Wells Fargo increased its refinance loans to Black homeowners by 106% compared to 2020.