The Commitment is a Direct Action to Address the Lower Homeownership Rates in the African American Community
Brad Blackwell, Executive Vice President and Head of Housing Policy and Homeownership Growth Strategies, Wells Fargo
(San Francisco, CA, Tuesday, February 28, 2017) – By the year 2024, 75 percent of the expected 14 million new households (renters and owners) in the U.S. will be diverse, according to the U.S. Census Bureau. African Americans are projected to represent 17 percent, or the third largest segment, of the new households.
Wells Fargo & Company is announcing a $60 billion lending commitment to create at least 250,000 new African American homeowners by 2027. The company’s commitment is a direct action to address the lower homeownership rates in the African American community. Housing finance industry barriers such as credit-scoring models, the lack of affordable housing inventory and economic constraints like unemployment and under-employment contribute to low homeownership among African Americans.
Ninety percent of African Americans say homeownership is a “dream come true,” 79 percent say it’s essential for building families and 51 percent are considering buying a home in the next two years, according to 2016 Wells Fargo & Ipsos Public Affairs surveys.
Joining Wells Fargo in the effort are the National Association of Real Estate Brokers (composed of African American real estate professionals), which has also set a homeownership goal, and the National Urban League, one of the nation’s most influential human and civil rights organizations, which will provide homebuyer education and counseling through its network of affiliate offices across the country.
Wells Fargo’s commitment additionally is seeking to increase the diversity of the Wells Fargo Home Lending sales team, and support the effort with $15 million to support a variety of initiatives that promote financial education and counseling over the next ten years.