Home Foreclosure Fannie Mae and 39 cities reach $53 million settlement over agency’s discriminatory practices | PC Weiner Brodsky Kider

Fannie Mae and 39 cities reach $53 million settlement over agency’s discriminatory practices | PC Weiner Brodsky Kider

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According to the media, Fannie Mae recently hit $53 million regulation with 19 housing organizations across the country over what the housing organizations alleged were racially discriminatory maintenance and marketing practices of foreclosed homes.

At issue was Fannie Mae’s alleged inability to properly service and market foreclosed homes in predominantly black and Latino communities during the July 2011 to October 2015 period.

Housing organizations allege they conducted a survey of 2,300 Fannie Mae-owned properties referred to as “homeowner” properties. The investigation reportedly found that the agency had not maintained REO housing in communities of color to the same standard that the agency maintained REO housing in predominantly white neighborhoods. In Milwaukee, for example, organizations alleged that about 60% of REO properties in communities of color had five or more deficiencies or maintenance issues, compared to only one-third of REO properties in predominantly white neighborhoods.

Settlement funds would go toward revitalizing neighborhoods negatively impacted by the agency’s practices.