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Fannie Mae says allegations of racial discrimination ‘are without merit’

Posted at 7:19 PM, May 14, 2015
and last updated 2015-05-14 21:16:20-04

RICHMOND, Va. — The largest owner of foreclosed properties in the country faces allegations of racial discrimination.

Mortgage giant Fannie Mae has been accused of racial discrimination in 129 cities, including Richmond, after a five-year-investigation.

To date, the National Fair Housing Alliance (NFHA) and 19 local fair housing organizations announced the filing with HUDof a housing discrimination complaint against Fannie Mae.

The groups allege that Fannie Mae maintains and markets its foreclosures (or real estate owned or “REO” properties) in white neighborhoods “consistently better than in middle‐ and working‐class African American and Latino neighborhoods, a practice that violates the federal Fair Housing Act.”

The complaint is the result of a five‐year investigation.

Richmond-based group Housing Opportunities Made Equal of Virginia(HOME) found evidence of the same claims.

“Communities that were hit hardest by the foreclosure crisis are struggling, and Fannie’s neglect is a serious hindrance to their recovery,” said Heather Crislip, President and CEO of HOME.

Highlights of the alleged racial disparity include, in communities of color: broken, boarded, or unsecured windows; trash or debris on the premises; holes in the structure of the home; wood rot; d unsecured, broken, or boarded doors; and exposed or tampered‐with utilities.

A spokesperson for Fannie Mae told the Baltimore Sunthat the accusations are without merit and that the company treats all neighborhoods equally.

“We strongly disagree with these allegations and firmly believe they have no merit,” Fannie Mae spokesman Andrew Wilson said in an email. “We are confident that our standards ensure that properties in all neighborhoods are treated equally, and we perform rigorous quality control to make sure that is the case. We remain dedicated to neighborhood stabilization efforts across the nation, including with respect to our maintenance of foreclosed properties.”