Wells Fargo Launches Program to Clear REO Inventory
Wells Fargo, the largest mortgage lender in the U.S., is launching a pilot program in February aimed at clearing the large inventories of foreclosed homes it owns, in a program dubbed “Neighborhood Lift.” The program will first launch in Los Angeles and Atlanta.
Wells Fargo has allocated $15 million to Los Angeles and $8 million to Atlanta for this year alone to go toward down-payment assistant, financing for renovations, and home buyer programs. The mortgage lender is teaming with the nonprofit group NeighborWorks America for the program.
For the next five years, the bank has earmarked $10.5 billion for Los Angeles and $1.3 billion for Atlanta for “Neighborhood Lift.”
“Wells Fargo wants to support the revitalization of neighborhoods substantially impacted by the housing downturn, and inspire others to join efforts to support our nation’s economic recovery,” Jon Campbell, head of the bank’s social responsibility department, said in a statement.