Wells Fargo will pay more than $100 million to settle a lawsuit over the bank’s hiring and lending practices.
United States District Court for the Northern District of California He says Wells Fargo has reached a $110 million settlement with plaintiffs who claimed the trillion-dollar bank’s hiring and lending practices were discriminatory.
As part of the settlement, Wells Fargo will create a $100 million mortgage lending program targeting low- and moderate-income borrowers to expand equitable access to financial services.
“For many individuals and communities historically excluded from traditional lending pathways, this program signals a shift toward more inclusive underwriting practices and deeper recognition of systemic barriers.
By re-evaluating traditional credit scoring models and incorporating more comprehensive criteria, this initiative has the potential to open up opportunities for applicants who were previously overlooked or unfairly classified as high-risk. This approach not only expands access to capital, but also promotes long-term financial stability and community growth.
Under the settlement agreement, the lending program, which aims to create a “more inclusive housing system,” will be in effect for at least three years.
In addition, Wells Fargo’s directors and officers liability insurance will pay $10 million to settle allegations that senior levels at the lender violated their duties regarding the bank’s hiring and lending policies.
The lawsuit arose from four interconnected cases that were consolidated in April 2024. The settlement was initially reached in September 2025 and received preliminary approval in January.
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