Wells Fargo to Revise REO Maintenance Guidelines, Pay Millions to Hard-Hit Neighborhoods

Although there was no information as to precisely what precipitated it, Wells Fargo Bank, N.A. has agreed to invest $39 million dollars to help improve housing in 45 communities across the country. The agreement between the Bank and the National Fair Housing Alliance (NFHA), 13 private fair housing organizations and the Department of Housing and Urban Development (HUD) was announced by HUD today. The announcement said the money is designed to help improve housing in minority neighborhoods that have been hard hit by the foreclosure crisis thru programs to support home ownership, neighborhood stabilization, property rehabilitation, and housing development.

Wells Fargo has also agreed to extend the amount of time that individual foreclosed properties (REO) are available for sale to owner-occupant or non-profit organizations before being offered to investors and has committed to improvements in its best practices regarding maintaining and marketing its REO. This includes use of a revised Real Estate Broker Procedure Manual and property inspection checklist, and an enhanced training program for real estate brokers and agents who list REO properties and bank staff responsible for managing the properties.

"NFHA is looking forward to working in partnership with Wells Fargo to make sure that all communities have a chance at a fair recovery," said Shanna L. Smith, President and CEO of the National Fair Housing Alliance.  "We are thrilled to see Wells Fargo's renewed efforts and leadership in this area. Many neighborhoods all across the country have been seriously damaged by REO homes left unattended.  This partnership will help to get some of those neighborhoods back on their feet."

 "This represents a significant commitment by Wells Fargo, HUD and NFHA to invest in programs that will strengthen minority communities affected by foreclosure," said J.K. Huey, Senior Vice President at Wells Fargo.  "We appreciate the perspectives and collaboration of NFHA and HUD, along with their efforts to shape the initiatives resulting from this agreement."