Wells Fargo & Co. on Monday said its subsidiary, Wells Fargo Bank NA, received a national rating of “Outstanding” in its most recent Community Reinvestment Act (CRA) Performance Evaluation, which covers the years 2012 to 2018.
Locally, the New York Multistate Metropolitan Statistical Area, which includes the Newark, Jersey City and Trenton Metropolitan Statistical Area, received an “Outstanding” CRA rating. The Philadelphia MMSA, which includes Camden and Atlantic City MSAs, also received an “Outstanding” CRA rating.
“While we’re incredibly proud that our national CRA rating reflects the work Wells Fargo has been doing to serve low- and moderate-income communities, we’re also honored that our work in New Jersey and the surrounding region has been recognized as ‘Outstanding’,” said Wells Fargo Northeast Lead Region President David Miree in a prepared statement. “This result reflects our ongoing commitment to lending to, investing in and providing service to communities throughout the area. We will continue to promote economic growth, sustainable homeownership and neighborhood stability in low- and moderate-income communities in New Jersey and the region and everywhere else we do business.”
This national and regional rating reflects Wells Fargo’s strong performance on the exam’s components and the company’s commitment to serving low- to moderate-income communities.
Established by Congress in 1977, the CRA encourages banks to meet the credit needs of all segments of the communities where and with whom they do business, including low- and moderate-income (LMI) populations and individuals.
In 2017, Wells Fargo received an exam rating of “Outstanding,” but its final rating was downgraded to “Needs to Improve” due to past legal issues.
“While Wells Fargo still has work to do to regain the trust of our customers, regulators and others, our strong commitment to lending to, investing in and providing service to low- and moderate-income communities across the country has not wavered, and this rating is proof that our work is making a difference,” said Wells Fargo Chief Executive Officer Charlie Scharf. “We are proud of the positive steps we have taken in recent years, and are pleased that the OCC noted this progress. Wells Fargo will continue to help promote economic growth, sustainable homeownership and neighborhood stability in low- and moderate-income communities where we do business.”
The CRA Performance Evaluation notes that Wells Fargo:
• Is a leader in making community development (CD) loans;
• Makes significant use of innovative and/or flexible loan products to meet credit needs;
• Provides retail banking options that are accessible in a majority of the areas surveyed; and
• Serves its customers through full-service ATMs, phone banking, online and mobile banking and mobile payments.
In recent years, Wells Fargo deepened its commitment to philanthropy in low- to moderate-income communities. In June 2019, the company committed $1 billion in philanthropy alone through 2025 to address the country’s housing affordability crisis. In 2019, the Wells Fargo Foundation invested $455 million in grants, funding national organizations to deliver programs at scale and nonprofits that specifically address the needs of local markets.
In March, the company announced it would distribute $175 million in donations in response to the impact of COVID-19 to help address food, shelter, small business and housing stability, as well as to provide help to public health organizations.