Wells Fargo Lending Record
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Like Peter Dreier and Lynn Brown (Opinion, Feb. 18) I believe the acquisition of First Interstate Bank by Wells Fargo is unfortunate. I also agree that the full mandate of the Community Reinvestment Act (like everything else now under congressional Republican assault) should be triggered.
However, unlike the authors, I have had direct experience working with Wells Fargo Bank in financing affordable housing in Los Angeles. In my experience no lender has surpassed Wells Fargo in its aggressive willingness to make construction loans for pioneer inner-city projects with only limited financial support. Perhaps the best example is the Santa Ana Pines single-family project in Watts.
While expanded mortgage lending may still be needed, such loans carry little risk, as they nearly always have FHA, FNMA or FHLMC guarantees. But few lenders have the capability, and fewer the willingness, to make construction loans for projects that create new opportunities for future buyers.
DAVID PEREL
Los Angeles
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