Systemic inequities in the United States have prevented too many minority families from achieving their homeownership and wealth-building goals for too long.
As the largest bank home mortgage originator, and largest bank originator of home loans to minorities over the last decade, Wells Fargo believes it has a responsibility to develop solutions that help close the gap. As a next step in meeting that responsibility, Wells Fargo announced a new initiative to help advance racial equity in homeownership across the country. The company will develop a Special Purpose Credit Program (SPCP) to help minority homeowners, whose mortgages are currently serviced by Wells Fargo, refinance those mortgages.
Initially, through the program, Wells Fargo will identify eligible Black homeowners who could benefit from a refinance product, according to a press release. Wells Fargo will commit $150 million to lower mortgage rates and reduce the refinancing costs to help these homeowners further benefit from refinancing. This program goes beyond the usual lending programs and puts the company’s own money to work refinancing minority families’ homes. The company will assess its progress and will publicly disclose it annually.
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SOURCE: Black Enterprise