Wells Fargo donates $25 million to expand Latino homeownership
Wells Fargo said this week that it’s donating $25 million as part of its corporate philanthropy to support programs and nonprofits focused on increasing Latino homeownership.
The San Francisco bank (NYSE: WFC) — which is the second-largest bank operating in the Phoenix metro — is working with UnidosUS, a nonprofit civil rights organization that recently launched Home Ownership Means Equity or HOME. The new program, which will help participants navigate the home-buying process, seeks to create 4 million new Latino homeowners by 2030.
The HOME program’s initial focus is on several cities with large Latino populations, including Phoenix; Stockton, California; Chicago; Orlando; and Houston. The program is expected to eventually expand to other states and cities.
Wells is the first “anchor funder” for UnidosUs’ HOME program, with a $10 million donation, matching a $10 million investment in the program from UnidosUS, which aims to raise a total of $100 million for its HOME program. Wells Fargo’s support for HOME is part of the bank’s $25 million philanthropic commitment to promote Latino homeownership.
“We need to make homeownership more accessible, especially in historically marginalized communities,” said Kristy Fercho, head of diverse segments, representation and inclusion at Wells Fargo, the nation’s largest bank lender to Black and Hispanic families for the last decade.
“We will continue to expand our programs to reach more customers in underserved communities by leveraging our strong partnerships with UnidosUS and other nonprofit organizations to break down the systemic barriers that make homeownership more difficult to attain,” Fercho said.
Wells Fargo recently overhauled its huge mortgage business, slimming it down to focus on the bank’s customers and members of minority communities.
UnidosUS has long supported Latino homeownership by helping prospective homeowners build their credit, afford a down payment, overcome language barriers, avoid predatory lending and get approved for what the nonprofit calls a “sustainable mortgage.”
“Homeownership has long provided the most effective pathway for families to build generational wealth in America,” said Janet Murguia, president and CEO of UnidosUS. “Our comprehensive strategy will help shape needed policy reforms while providing tools and resources Latinos need to successfully navigate the home-buying process.”
Separately, Wells Fargo faces a lawsuit from Black mortgage applicants who allege the bank discriminates against Black Americans. Bloomberg News reported this month that the bank and borrowers are in talks to settle the litigation.