CHARLOTTE, N.C. N.C.—Mortgage lending patterns by Wells Fargo show significant racial disparities in North Carolina, with Black, Latino and Asian applicants denied home loans at roughly twice the rate of white applicants, according to a new report,
The study, released by the Americans for Financial Reform Education Fund, analyzed nearly 25,000 mortgage applications and more than 16,000 loans made by the bank in the state between 2020 and 2024. It found denial rates of 22.5% for Black applicants, 25.6% for Latino applicants and 20.3% for Asian applicants, compared with 10.3% for white applicants, according to NC Newsline.
“It does raise significant questions about Wells Fargo’s interest and willingness to serve the entirety of the community in North Carolina,” Patrick Woodall, managing director of the group, told NC Newsline.
The report also found that disparities persisted even when controlling for income, suggesting differences in outreach and lending patterns, Woodall said.
Researchers said denial rates for Black and Latino applicants increased between 2020 and 2024, rising to 25.6% and 29.8%, respectively, while denial rates for white applicants rose at a slower pace.
‘Lending Gaps’
The study also highlighted gaps in lending activity in Charlotte, where Black residents make up about 22.9% of the population but accounted for just 8.2% of Wells Fargo’s mortgage applicants and 7.1% of loan originations. Latino residents, who represent about 11% of the population, made up 7.4% of applicants and 6.6% of originations, according to the report.
Across North Carolina, the bank also underrepresented communities of color more broadly, taking only 15.4% of applications and making 14.3% of loans in census tracts where people of color are the majority, despite those areas comprising more than a quarter of the state’s tracts.
The report calls on Wells Fargo to expand outreach to underserved communities and urges regulators to investigate the bank’s compliance with fair lending laws. It also recommends local governments review their business relationships with the bank, according to NC Newsline.
Ericka Taylor, co-executive director of the watchdog group, said the findings are especially concerning amid broader debates over fair lending enforcement.
‘Yawning Racial Wealth Gap’
“The bank’s record of racial disparities in its home purchase lending not only undermines people’s ability to build wealth and invest in their families’ futures, but it also perpetuates the yawning racial wealth gap,” Taylor said in a statement.
The report also noted that Wells Fargo saw a 70% decline in mortgage applications and originations in North Carolina over the period, a drop attributed in part to rising interest rates as well as regulatory scrutiny tied to past lending practices.
NC Newsline reported that the bank did not respond to requests for comment.
