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Wells Fargo Pulls Plug on Online Home Search Tool

Critics claim the tool the tool discriminates against minority neighbourhoods and violates federal fair housing laws.

June 23, 2000

Wells Fargo and Co., one of the biggest mortgage lenders in the United States, said on Friday it disconnected an online home search tool from its Web site amid charges that the tool discriminates against minority neighbourhoods and violates federal fair housing laws.

The tool, called "Community Search Service," is aimed at helping homebuyers in their house search by offering data and descriptions about neighbourhoods across the country.

In a statement, Wells Fargo's mortgage unit, Wells Fargo Home Mortgage Inc., said it decided to disable its 'Community Search Service' link to its Web site (www.wellsfargo.com/mortgage/) "until we can determine if the editorial content is compatible with our demonstrated commitment to low- and moderate-income and minority homebuyers."

On Wednesday, the Association of Community Organisations for Reform Now (ACORN), a national community advocacy group, joined a federal lawsuit against Wells Fargo.

ACORN and the original plantiffs alleged that the Community Search Service contains explicit racial classifications and racial stereotypes of neighbourboods, which in turn stigmatizes those areas and steers higher income and non-minority homebuyers away from them.

"We have no control over the data or content of this search tool, but merely faciliate access to the site through page links," Wells Fargo Home Mortgage said. "However, we believe it's our responsibility to take this action to address the concerns expressed."






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