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

Just Posted

Dreamforce returned to San Francisco in person this week – but with a tiny sliver of past attendance. (Courtesy Salesforce)
Dreamforce returns with hundreds on hand, down from 170,000 in the past

High hopes for a larger Salesforce conference shriveled during the summer

The numbers show nearly 14 percent of San Francisco voters who participated in the Sept. 14 recall election wanted to oust Gov. Gavin Newsom from elected office. (Shutterstock photo)
(Shutterstock photo)
How San Francisco neighborhoods voted in the Newsom recall

Sunset tops the list as the area with the most ‘yes’ votes

Alison Collins says that she and other members of San Francisco Unified School District Board of Education facing potential recall “represent constituents that are often erased or talked over.” <ins>(Kevin N. Hume/The Examiner)</ins>
Alison Collins speaks: Embattled SF school board member confronts the recall effort

‘It’s important for folks to know what this recall is about. It’s bigger than any one of us.’

Is the Black Cat incident a distraction from the recovery of The City’s storied nightlife industry or does Mayor London Breed’s behavior inadvertently highlight the predicament the industry’s been in since San Francisco reinstated indoor mask requirements on Aug. 20?<ins> (Kevin N. Hume/The Examiner, 2021)</ins>
Club owners to maskless mayor: Are we the new fun police?

Black Cat affair highlights difficult recovery for nightlife industry

BART’s Powell Street station in The City was the site of a fatal accident on Sept. 13.<ins> (Kevin N. Hume/The Examiner)</ins>
Powell Station death serves as a grim reminder. BART doors don’t stop for anyone

What you need to know about safety sensors on the trains

Most Read