Wells Fargo Press Release 2/7/2006
Wells Fargo Receives Highest Possible Rating for Community Reinvestment Wells Fargo Bank, N.A. receives “Outstanding” rating
San Francisco — February 7, 2006
Wells Fargo & Company (NYSE: WFC) said today that Wells Fargo Bank, N.A. received an “Outstanding” rating – the highest regulatory rating possible – in its most recent Community Reinvestment Act (CRA) examination by the Office of the Comptroller of the Currency (OCC). Wells Fargo Bank, N.A., which serves more than 10 million households in 23 states, met and exceeded community needs in areas such as affordable housing, financial education and small business lending.
The Community Reinvestment Act of 1977 requires banks to meet the credit needs of all the communities where they do business, especially low-to-moderate income communities and families.
“Community reinvestment is integral to our business because it helps ensure the success of every neighborhood we serve,” said John Stumpf, President and Chief Operating Officer. “For Wells Fargo it’s important not only that we meet the guidelines set forth by the OCC, but also that we exceed them. We believe it’s the right thing to do for our communities – it’s just good business!”
Wells Fargo received an overall “Outstanding” rating, and also was rated “Outstanding” in each of the exam’s three Test categories:
Lending (mortgages, small business, and community development for affordable housing and economic development);
Services (retail banking stores, alternative delivery channels, and financial outreach), and;
Investments (funding capital and grants to community organizations).
The examination period included CRA performance from Oct. 1, 2001 through Sept. 30, 2004.
In the Lending Test category, which represents half of the rating, the OCC said Wells Fargo “dominated the markets for mortgage and small loans to businesses in most of its assessment areas.” It also said Wells Fargo’s distribution of small loans to businesses among geographies of different income levels, including low- and moderate-income communities, was “Excellent” and that the Bank’s distribution of small business loans among businesses of different revenue size was also “Excellent.”
The OCC rated Wells Fargo’s mortgage lending among various geographies and borrowers of different income levels as “Good.” It said Wells Fargo’s use of flexible mortgage products, including down payment assistance programs, strengthened the Bank’s efforts to meet the credit needs in its markets. It specifically noted:
National Home Ownership ProgramSM: Qualified homebuyers are not required to make a down payment or have traditional credit history. Moreover, the loan allows homebuyers to use some secondary income, including cash-based income, for qualifying purposes.
Community Development Mortgage Program: Offers special loan advantages to help make homeownership a reality for low- to moderate-income community members. The program provides financing to homebuyers who may have higher debt to income ratios, and/or the need for down payment requirements. There is no mortgage insurance required.
The OCC said Wells Fargo’s CRA performance was due in part to the volume and nature of its community development lending for low-to-moderate income individuals, affordable housing, rehabilitation financing and economic development. During the exam period, Wells Fargo financing enabled developers to create or retain 22,000 affordable living spaces in a number of markets.
In the Investment Test category, the OCC rated Wells Fargo’s investments and charitable contributions totaling over $725 million as “Outstanding,” reflecting “an excellent level of responsiveness to the needs of its markets, especially affordable housing.” It said “in many markets, the bank has been a leader in developing and participating in complex investments” involving a number of businesses and functions across the Company, including Wells Fargo Community Development Corporation, Wells Fargo Foundation and its Wells Fargo Housing Foundation.
In the Service Test category, the OCC said Wells Fargo demonstrates “excellent responsiveness” to the banking needs of communities and individuals of different income levels through retail delivery systems and community development services such as Wells Fargo’s bi-lingual online financial literacy program, Hands on Banking®. The OCC specifically noted Wells Fargo’s range of services to the traditionally un-banked Hispanic population including the Company’s leadership in accepting the Mexican Matricula Consular identification card for opening new banking accounts and its low-fee InterCuenta Express wire transfer service to Mexico.
Wells Fargo & Company is a diversified financial services company with $482 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service.
San Francisco — February 7, 2006
Wells Fargo & Company (NYSE: WFC) said today that Wells Fargo Bank, N.A. received an “Outstanding” rating – the highest regulatory rating possible – in its most recent Community Reinvestment Act (CRA) examination by the Office of the Comptroller of the Currency (OCC). Wells Fargo Bank, N.A., which serves more than 10 million households in 23 states, met and exceeded community needs in areas such as affordable housing, financial education and small business lending.
The Community Reinvestment Act of 1977 requires banks to meet the credit needs of all the communities where they do business, especially low-to-moderate income communities and families.
“Community reinvestment is integral to our business because it helps ensure the success of every neighborhood we serve,” said John Stumpf, President and Chief Operating Officer. “For Wells Fargo it’s important not only that we meet the guidelines set forth by the OCC, but also that we exceed them. We believe it’s the right thing to do for our communities – it’s just good business!”
Wells Fargo received an overall “Outstanding” rating, and also was rated “Outstanding” in each of the exam’s three Test categories:
Lending (mortgages, small business, and community development for affordable housing and economic development);
Services (retail banking stores, alternative delivery channels, and financial outreach), and;
Investments (funding capital and grants to community organizations).
The examination period included CRA performance from Oct. 1, 2001 through Sept. 30, 2004.
In the Lending Test category, which represents half of the rating, the OCC said Wells Fargo “dominated the markets for mortgage and small loans to businesses in most of its assessment areas.” It also said Wells Fargo’s distribution of small loans to businesses among geographies of different income levels, including low- and moderate-income communities, was “Excellent” and that the Bank’s distribution of small business loans among businesses of different revenue size was also “Excellent.”
The OCC rated Wells Fargo’s mortgage lending among various geographies and borrowers of different income levels as “Good.” It said Wells Fargo’s use of flexible mortgage products, including down payment assistance programs, strengthened the Bank’s efforts to meet the credit needs in its markets. It specifically noted:
National Home Ownership ProgramSM: Qualified homebuyers are not required to make a down payment or have traditional credit history. Moreover, the loan allows homebuyers to use some secondary income, including cash-based income, for qualifying purposes.
Community Development Mortgage Program: Offers special loan advantages to help make homeownership a reality for low- to moderate-income community members. The program provides financing to homebuyers who may have higher debt to income ratios, and/or the need for down payment requirements. There is no mortgage insurance required.
The OCC said Wells Fargo’s CRA performance was due in part to the volume and nature of its community development lending for low-to-moderate income individuals, affordable housing, rehabilitation financing and economic development. During the exam period, Wells Fargo financing enabled developers to create or retain 22,000 affordable living spaces in a number of markets.
In the Investment Test category, the OCC rated Wells Fargo’s investments and charitable contributions totaling over $725 million as “Outstanding,” reflecting “an excellent level of responsiveness to the needs of its markets, especially affordable housing.” It said “in many markets, the bank has been a leader in developing and participating in complex investments” involving a number of businesses and functions across the Company, including Wells Fargo Community Development Corporation, Wells Fargo Foundation and its Wells Fargo Housing Foundation.
In the Service Test category, the OCC said Wells Fargo demonstrates “excellent responsiveness” to the banking needs of communities and individuals of different income levels through retail delivery systems and community development services such as Wells Fargo’s bi-lingual online financial literacy program, Hands on Banking®. The OCC specifically noted Wells Fargo’s range of services to the traditionally un-banked Hispanic population including the Company’s leadership in accepting the Mexican Matricula Consular identification card for opening new banking accounts and its low-fee InterCuenta Express wire transfer service to Mexico.
Wells Fargo & Company is a diversified financial services company with $482 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service.
posted by Kirby P at 5:06 PM
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