Regulators caught Wells Fargo, other banks in probe over mortgage pricing discrimination

In January 2021, the U.S. Comptroller of the Currency, the Department of Justice, and the Consumer Financial Protection Bureau announced a joint investigation into mortgage pricing discrimination at Wells Fargo and other large banks. Regulators allege that the banks charged Black and Hispanic borrowers higher fees and rates than white borrowers with similar credit profiles. The investigation also found evidence that the banks provided fewer loan modifications and refinancing options to borrowers of color than to their white peers. In addition, regulators accused the banks of failing to invest enough in communities of color as required by the Community Reinvestment Act. The investigation has been ongoing and the regulators involved have not issued any further updates.