Wells Fargo (WFC) is facing an investigation by the Department of Housing and Urban Development over its programs to increase homeownership among Black Americans, The Wall Street Journal reported Wednesday, citing a letter sent by the regulator to Chief Executive Charlie Scharf.

The letter says that the regulator would investigate whether Wells Fargo violated the Fair Housing Act by being partial to Black or other minority homeowners, according to the report.

The regulator said in the letter that the bank offered different products or terms to homeowners based on their race, the Journal reported.

Wells Fargo declined to comment when contacted by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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