Fannie Mae accused of racial discrimination in maintenance of REOs

May 14, 2015
In a complaint filed this week with federal housing officials, Fannie Mae was accused of showing a pattern of racial discrimination by allowing its stock of foreclosed properties to deteriorate in non-white neighborhoods, while doing a better job of maintaining and marketing properties in largely white areas.
     The National Fair Housing Alliance (NFHA), a consortium of more than 200 private nonprofit housing organizations, filed the complaint Wednesday on behalf of itself and 19 other fair-housing groups with the U.S. Department of Housing and Urban Development (HUD).
     NFHA said Fannie violated the Fair Housing Act through unequal treatment. Rundown real-estate owned (REOs) properties in non-white neighborhoods are contributing to blight, health and safety hazards and placing a burden on neighbors and the local governments, the complaint says.