ST. LOUIS, MO/March 7, 2017 (STLRealEstate.News) Over the course of the next 10 years, Wells Fargo is looking to take on a brave new initiative for making home-ownership a reality for so many African American citizens in the United States today trapped within the poverty cycle. The campaign is set to take place over the next decade, with the hope that a minimum of 250,000 African Americans will be new homeowners by the end of it.
The bank reported this week that the project will disperse $60 billion to African American borrowers by 2027, and hopes for it to be a direct response to the low home-ownership rates among the black community. In addition to the initial sum, the bank stated they’d devote another $15 million over that same period in support of initiatives like financial education and counseling for the participants.
Brad Blackwell, the executive vice president and head of housing policy and home-ownership growth with Wells Fargo, stated in a release this week, “Wells Fargo’s $60 billion lending goal can contribute to economic growth by making responsible home-ownership possible for more African Americans in communities across the country. We are proud to be the first mortgage lender to make a public commitment to help increase African American home-ownership in America today.”
Wells Fargo decision comes at a time when the Census Bureau data show that by 2024, some 75 percent of the 14 million new households (including renters) will arise in the United States as ethnically diverse families. This same data also shows that 14 percent of these new households will be African American, the third largest segment.
Wells Fargo’s decision comes off the heels of their previous campaign to help increase Hispanic home-ownership in America today. Last year, the lender committed up to $125 billion in mortgage originations. The bank plans to roll-out many more community-involved projects in the upcoming future.