Following new reports of widespread discrimination against Black homeowners, the Mayor and Comptroller told Wells Fargo that the City of New York would not open any new depository accounts with the bank.
New York City Mayor Eric Adams and Comptroller Brad Lander told Wells Fargo in a letter that the City of New York would refrain from opening new depository accounts with the bank following new reports of widespread discrimination against Black homeowners.
A Bloomberg News study published on March 11, 2022, found that Wells Fargo rejected over half of Black applicants seeking to refinance their homes in 2020, while approving 72% of white applicants. In 2021 the bank approved just 58% of Black applications, compared with 79% of white applicants.
In the letter addressed to Wells Fargo CEO & President Charles W. Scharf, Mayor Adams and Comptroller Lander state:
“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.
“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.”
Mayor Adams and Comptroller Lander appreciate that Wells Fargo is engaging with the City about these concerns, and look forward to continued public conversation about clear steps the bank will take to address the allegations contained within the article and additional best practices for fair lending.
The City of New York had taken Wells Fargo off the designated banking list in 2017 following concerns about discriminatory lending and predatory practices and the bank’s Federal Community Reinvestment Act rating of “needs improvement,” but added it back in 2021 after a contested vote. Currently there are no City agency deposit accounts open with Wells Fargo.
“It’s outrageous that Wells Fargo has continued to engage in lending discrimination against Black homeowners, even after paying a record settlement for similar actions over a decade ago that contributed to the foreclosure crisis,” said New York City Council Speaker Adrienne Adams. “These disturbing practices are part of a long legacy and history of discrimination against Black Americans for generations, extracting wealth from our communities that perpetuates the country’s wealth gap. As a City, we cannot in good conscience ignore this deplorable conduct. I support Mayor Adams and Comptroller Lander’s decision to stop opening depository accounts with Wells Fargo because these unacceptable actions must have consequences.”
The full letter can be accessed here.
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