Wells Fargo Receives ‘Outstanding’ Community Reinvestment Act Rating
MAY 5, 2020 - 6:25 am
Wells Fargo Bank received a rating of “Outstanding” in its most recent Community Reinvestment Act (CRA) Performance Evaluation, which covers the years 2012 to 2018.
This rating reflects Wells Fargo’s strong performance on the exam’s components and the company’s proven commitment to serving low- to moderate-income communities. A copy of the OCC’s entire report can be found on Wells Fargo’s website.
“While Wells Fargo still has work to do to regain the trust of our customers, regulators and others, our strong commitment to lending to, investing in and providing service to low- and moderate-income communities across the country has not wavered, and this rating is proof that our work is making a difference,” said Wells Fargo CEO Charlie Scharf. “We are proud of the positive steps we have taken in recent years, and are pleased that the OCC noted this progress. Wells Fargo will continue to help promote economic growth, sustainable homeownership and neighborhood stability in low- and moderate-income communities where we do business.”
Established by Congress in 1977, the CRA encourages banks to meet the credit needs of all segments of the communities where and with whom they do business, including low- and moderate-income (LMI) populations and individuals. In 2017, Wells Fargo received an exam rating of “Outstanding,” but its final rating was downgraded to “Needs to Improve” due to past legal issues.
In 2019, Wells Fargo provided more than $4 billion in capital to support the development of more than 15,000 affordable housing units in communities in more than 30 states. Wells Fargo Community Lending and Investment committed $4.3 billion of debt and equity capital during 2019 in cities across the country in 265 transactions.
In recent years, Wells Fargo has deepened its commitment to philanthropy in low- to moderate-income communities. In June 2019, the company committed $1 billion in philanthropy alone through 2025 to address the country’s housing affordability crisis. Also in 2019, the Wells Fargo Foundation invested $455 million in grants, funding national organizations to deliver programs at scale and nonprofits that specifically address the needs of local markets.
In March, the company announced in response to the impact of COVID-19 that it would distribute $175 million in donations to help address food, shelter, small business and housing stability, as well as to provide help to public health organizations.
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!
“DE&I is about building corporate strength and success, embracing the future and embracing the talent that will lead to the ultimate success and longevity of an organization.” Melba Hughes began her diversity, equity and inclusion (DE&I) work three decades ago.... read more
Dr. Arin N. Reeves, president and managing director of Nextions, a work culture advisory firm, found herself transitioning from practicing law to focusing on diversity, equity and inclusion in the workplace more than 25 years ago, but she says the... read more