Wells Fargo denied minority mortgage applicants twice as often as whites in NC
Banking giant Wells Fargo denied minority mortgage applicants at roughly double the rate of white applicants across North Carolina from 2020-2024.
RALEIGH, NORTH CAROLINA — A new study reveals that Wells Fargo denied mortgage applications from Black, Latino, and Asian applicants about twice as frequently as white applicants in North Carolina between 2020 and 2024.
Americans for Financial Reform Education Fund released the report Wednesday, documenting what it called “significant racial disparities” in the San Francisco-based bank’s lending practices across the state, including in Charlotte where Wells Fargo operates a major regional hub employing 27,000 people.
The data shows Wells Fargo rejected 22.5% of Black applicants, 25.6% of Latino applicants, and 20.3% of Asian applicants in North Carolina, compared with just 10.3% of white applicants during the four-year period analyzed.
Study Calls for Investigation
“It does raise significant questions about Wells Fargo’s interest and willingness to serve the entirety of the community in North Carolina,” said Patrick Woodall, managing director of the nonprofit, nonpartisan advocacy organization.
The report urges Wells Fargo to improve its performance in meeting mortgage needs across North Carolina and increase outreach to Black, Latino, and Asian applicants and communities. It also called on regulatory agencies to investigate the bank’s compliance with fair lending laws.
Local governments should also revisit their business relationships with Wells Fargo, according to the study’s recommendations.
Disparities Persist Across Income Levels
Woodall said the racial disparities in lending patterns remained even when researchers controlled for income levels, suggesting the differences cannot be explained by applicants’ financial qualifications alone.
“It is highly suggestive to me that their businesses really focus on upper-income white borrowers and neighborhoods,” Woodall said. “This can happen in a number of ways, but it’s suggestive of greater outreach and greater effort in whiter parts of North Carolina.”
The findings raise concerns about equitable access to homeownership opportunities across different racial and ethnic communities in the state.
Bank Has Not Responded
Wells Fargo did not respond to requests for comment from NC Newsline regarding the study’s findings or its methodology.
The Americans for Financial Reform Education Fund describes itself as a national financial watchdog organization focused on holding financial institutions accountable for their lending and business practices.
The study comes as housing affordability and access to credit remain significant challenges for many North Carolina residents, particularly in rapidly growing metropolitan areas like Charlotte and the Research Triangle region.
