The lending analysis examines Wells Fargo's lending record, as reported in the Home Mortgage Disclosure
Act (HMDA). HMDA does not include all lending activity, but it does provide useful, if limited, insight into
mortgage lending rates.
Approximately one-fifth of all Wells Fargo loans made to low- and moderate-income borrowers were high
cost refinance loans, with an average interest rate of 9.8%. Wells Fargo made more than 110,000 high cost
refinance loans to low- and moderate-income borrowers representing $10.8 billion in lending. Affordable
refinance loans do have a place in responsible lending practices, however, when they are offered at high rates
and fees, refinance loans are considered to be predatory practices that replace homeowners’ equity and
savings with additional debt. Wells Fargo's record of high cost loans, as noted in HMDA, suggests its
business model was based in part on the irresponsible use of refinance and home equity lending.
HMDA data also shows that minority borrowers made up a major segment of Wells Fargo's high cost
refinance business. While African American and Latino borrowers together accounted for only of 11% of
Wells Fargo's total lending volume, these populations accounted for 25% of Wells Fargo's $47.5 billion high
cost refinance lending business
Act (HMDA). HMDA does not include all lending activity, but it does provide useful, if limited, insight into
mortgage lending rates.
Approximately one-fifth of all Wells Fargo loans made to low- and moderate-income borrowers were high
cost refinance loans, with an average interest rate of 9.8%. Wells Fargo made more than 110,000 high cost
refinance loans to low- and moderate-income borrowers representing $10.8 billion in lending. Affordable
refinance loans do have a place in responsible lending practices, however, when they are offered at high rates
and fees, refinance loans are considered to be predatory practices that replace homeowners’ equity and
savings with additional debt. Wells Fargo's record of high cost loans, as noted in HMDA, suggests its
business model was based in part on the irresponsible use of refinance and home equity lending.
HMDA data also shows that minority borrowers made up a major segment of Wells Fargo's high cost
refinance business. While African American and Latino borrowers together accounted for only of 11% of
Wells Fargo's total lending volume, these populations accounted for 25% of Wells Fargo's $47.5 billion high
cost refinance lending business
