CX Matiash/AP file photoThe federal government reached a $5 million settlement with Wells Fargo to resolve allegations it discriminated against pregnant women.

CX Matiash/AP file photoThe federal government reached a $5 million settlement with Wells Fargo to resolve allegations it discriminated against pregnant women.

Wells Fargo settles inquiry into bias against moms

The federal government said Thursday that it reached a $5 million settlement with Wells Fargo to resolve allegations it discriminated against pregnant women, new mothers and women on maternity leave.

The U.S. Department of Housing and Urban Development said Wells Fargo's home mortgage unit refused to make loans available to some women based on their gender or family status, and forced some women to give up their maternity leave and go back to work before it would close a loan with them. HUD said bank employees also made discriminatory statements to and about women who were pregnant or had recently given birth.

The agency said Wells Fargo will change its underwriting guidelines as part of the settlement and will show its staff how to follow the new guidelines.

Wells Fargo & Co. said it is settling to avoid a long legal battle. It said HUD found no violations of any laws.

The San Francisco company will distribute a total of $165,000 to six families. It will also set aside at least $3.5 million to compensate other applicants who were discriminated against. The agency said it received complaints from across the country, including from Arizona, California, Nebraska, Nevada and Texas.

HUD said the $3.5 million fund is intended to pay $20,000 each to as many as 175 claimants, and if there are more, the company will set aside another $1.5 million to make similar payments to as many as 75 more claimants. Claimants beyond those 250 would share a prorated portion of the $5 million.

Wells Fargo Home Mortgage is the largest U.S. provider of home mortgage loans.businessBusiness & Real EstateDiscriminationU.S. Department of Housing and Urban DevelopmentWells Fargo

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

San Francisco Police Officer Nicholas Buckley, pictured here in 2014, is now working out of Bayview Station. <ins>(Department of Police Accountability records)</ins>
SF police return officer to patrol despite false testimony

A San Francisco police officer accused of fabricating a reason for arresting… Continue reading

Disability advocates protested outside the home of San Francisco Health Officer Tomas Aragon. (Courtesy Brooke Anderson)
Vaccine rollout plan for people with disabilities remains deeply flawed

On February 13, disability activists paid a visit to the house of… Continue reading

Mayor London Breed and Supervisor Shamann Walton announced that funding would be diverted from the police budget toward the black community in June 2020. (Kevin N. Hume/S.F. Examiner)
City directs $60 million toward Black community services and housing support

San Francisco released new details Thursday for how it plans to spend… Continue reading

The Stud, The City’s oldest gay bar which is vacating its longtime home at Ninth and Harrison streets after more than 50 years, on Thursday, May 21, 2020. (Kevin N. Hume/S.F. Examiner)
City’s nightlife recovery fund approved but struggling business owners fear relief may come too late

As San Francisco’s nightlife scene approaches nearly a year of a complete… Continue reading

Riordan Crusaders versus St. Ignatius Wildcats at JB Murphy Field on the St. Ignatius Prepatory High School Campus on September 14, 2019 in San Francisco, California. (Chris Victorio | Special to the S.F. Examiner)
State allows high school sports to resume, but fight is far from over

For the first time since mid-March 2020, there is hope for high… Continue reading

Most Read