Wells Fargo & Company says its new initiative aims to help at least 250,000 African-Americans become homeowners over the next decade.
The bank giant says its initiative is directly in response to the lower homeownership rates among the African-American community. Wells Fargo will devote $60 billion to qualified African-American consumers for home purchases by 2027. It also will devote $15 million to support several initiatives that promote financial education and counseling geared toward African-Americans over the next 10 years.
“Wells Fargo’s $60 billion lending goal can contribute to economic growth by making responsible homeownership possible for more African-Americans in communities across the country,” says Brad Blackwell, executive vice president and head of housing policy and homeownership growth strategies at Wells Fargo. “We are proud to be the first mortgage lender to make a public commitment to help increase African-American homeownership.”
By 2024, 75 percent of the projected 14 million new households—including renters—are expected to be diverse, according to U.S. Census Bureau data. Researchers predict that African-Americans will comprise 14 percent of new households, the third largest segment.
Wells Fargo’s announcement comes on the heels of a 2015 initiative to address Hispanic homeownership rates. Last year, bank officials provided support to the Hispanic Wealth Project, which sought to triple Hispanic household wealth over the next decade. Wells Fargo committed up to $125 billion in mortgage originations and $10 million in supporting several programs, including greater financial education and counseling of Hispanic home buyers.
Source: Wells Fargo