Wells Fargo Banker and Boulder Slumlord Clay Wyatt Object of Source-of-Income Discrimination Lawsuits and Federal & State Investigations

Source-of-Income Discrimination in Colorado HousingWhy Wyatt’s case exposes the quiet prejudice in who gets to rent a homeLIn 2021, Colorado passed a landmark protection making it illegal for landlords to refuse or penalize tenants because of how they pay—whether through disability benefits, Section 8 vouchers, alimony, veterans’ stipends, or other lawful income. It was meant to close a moral loophole: poverty or unconventional income shouldn’t be grounds for exclusion.In 2025, Boulder reinforced those rules through an even stronger city-wide ordinance.Yet four years later, source-of-income discrimination remains one of the most under-enforced violations in the state—and the lawsuit against Clay Wyatt, a Wells Fargo real-estate banker turned landlord, shows why.The Law, in PrincipleUnder C.R.S. § 24-34-502.5, landlords may not:Deny or terminate a tenancy because rent is paid through public or alternative income sources.Set different terms, raise rent, or threaten eviction on that basis.Retaliate against tenants who assert these rights.

In theory, enforcement runs through the Colorado Civil Rights Division (CCRD). In practice, the CCRD’s backlog and the private-lawsuit requirement make relief rare. Many tenants never file. Landlord like Clay Wyatt count on this.According to court filings, Wyatt rented a home he owns, then pursued a self-help eviction. He then pursued a formal eviction shortly after learning their rent involved non-traditional income streams.The property had rodent infestations that the tenants were forced to address themselves, a broken gate that did not provide for a mandatory 2nd egress route and no legal rescue windows, all conditions that violated Colorado’s Warranty of Habitability.Instead of addressing those issues, Wyatt treated the tenants as financial risks.For a banker, that bias is especially striking. Wyatt’s day job involves assessing credit, lending, and consumer fairness—fields built on anti-discrimination compliance. Yet as a landlord, he allegedly disregarded the same principles. It’s a vivid example of how source-of-income prejudice hides behind financial language: “risk,” “instability,” or “administrative burden.”The Pattern Across ColoradoAdvocates say Wyatt’s behavior isn’t unique. Across the Front Range, voucher holders and benefit recipients report:Property managers hanging up when they mention assistance.Craigslist ads coded with “no vouchers.”Sudden rent hikes or lease non-renewals after landlords learn how payments are made.Denver and Boulder both have local ordinances reinforcing the state ban, but few cases reach court. Most victims move quietly rather than fight.“Landlords know the odds,” says a known Denver tenants’-rights attorney. “If enforcement takes a year, discrimination feels consequence-free.”Why Enforcement FailsNo proactive oversight. Colorado relies on complaints, not audits.Low awareness. Many landlords—especially small owners—don’t realize the rule exists.But hopefully that will change soon thanks to "Wyatt's Law," a legislative initiative inspired by this infamous slumlord.No certification barrier.Anyone can rent a property without proving they’ve read or understood housing law.Weak penalties. Settlements rarely exceed a few thousand dollars; deterrence is minimal.That’s why proposals like Wyatt’s Law, which would require landlord training and certification, matter: they create a gatekeeping mechanism so “I didn’t know” stops being a defense.The Real-World CostSource-of-income bias doesn’t just harm tenants—it undermines public policy. Colorado invests millions in housing assistance, only to watch recipients turned away or pushed out by stigma. Families end up homeless while funds go unused.And when a banking professional like Clay Wyatt allegedly engages in that discrimination, it erodes trust beyond housing. It blurs the line between financial ethics and private behavior—showing how the same bias that shuts people out of homes can echo through lending and credit systems.What Should ChangeMandatory education: Every landlord should complete training on source-of-income protections before leasing.Automatic penalties: Discrimination findings should trigger fines without requiring full litigation.Public transparency: A searchable registry of violators, updated annually.Integration with lenders: Banks employing real-estate professionals should require outside-of-work compliance with fair-housing standards.The Bottom LineSource-of-income discrimination is the modern face of economic bias: polite, bureaucratic, and devastating.
If Wyatt’s Law passes, it could transform the Clay Wyatt case from another lawsuit into a watershed moment - Colorado’s recognition that financial respectability means nothing if it excludes those who pay differently but pay all the same.