*Wells Fargo announced this week it will pledge $60 billion to create at least 250,000 African American homeowners by 2027, directly addressing the lower homeownership rates in the African American community.
According to the U.S. Census Bureau, by the year 2024, 75% of the expected 14 million new households (renters and owners) in the U.S. will be diverse.
And of this amount, African Americans are projected to represent 17%, or the third largest segment, of the new households.
Wells Fargo said that through the commitment it plans to:
- Lend $60 billion to qualified African American consumers for home purchases by 2027.
- Increase the diversity of the Wells Fargo Home Lending sales team
- Support the effort with $15 million toward a variety of initiatives that promote financial education and counseling over the next ten years.
Working alongside Wells Fargo are the National Association of Real Estate Brokers (composed of African American real estate professionals) (which has also set a homeownership goal), the NAACP and the National Urban League.
“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,” said Brad Blackwell, executive vice president and head of housing policy and homeownership growth strategies for Wells Fargo.
Wells Fargo’s $60 million commitment follows its 2015 announcement to help increase Hispanic homeownership. At the time, Wells Fargo Home Mortgage said it aimed originate $125 billion over the next 10 years in order to assist in the National Association of Hispanic Real Estate Professionals’ Hispanic Wealth Project, which seeks to triple Hispanic household wealth over the next decade.