Discrimination in Foreclosures

http://www.blackradionetwork.com/discrimination_in_foreclosures_

WASHINGTON, DC -Marking the forty-third anniversary of
the signing of the federal Fair Housing Act, four fair
housing organizations today released their findings of
a year-long investigation into the ways that banks
secure, maintain, and market the foreclosed properties
they own.

"Here Comes the Bank, There Goes Our Neighborhood: How
Lenders Discriminate in the Treatment of Foreclosed
Homes," is the title of the report, concluding a
year-long investigation of 624 bank-owned properties
located in Washington, D.C.'s Maryland suburbs, Dayton,
Oh., New Haven and Hartford, Ct., and Richmond, Va..

(The full report is available from the above website.)

The investigation found that banks are discriminating
in the treatment of their properties, as they generally
take greater care to maintain and secure the properties
that they own in white neighborhoods than they do in
African-American neighborhoods.

The National Fair Housing Alliance in Washington, D.C.
and three of its member organizations - the Miami
Valley Fair Housing Center in Dayton, Oh., the
Connecticut Fair Housing Center in Hartford, Ct., and
Housing Opportunities Made Equal in Richmond, Va. -
evaluated the maintenance of bank-owned homes in their
local area on a 100-point scale, subtracting points
when properties were poorly maintained or created an
eye sore with poor curb appeal.

Although many properties in white neighborhoods
received passing grades and had well-maintained and
trash-free lawns, secured entrances, and generally nice
upkeep, the properties in African American
neighborhoods and Latino neighborhoods were more likely
to receive below average or failing grades due to
cracked foundations, leaky roofs, and "warning" signs
out front.

"In the aftermath of the foreclosure crisis, we are
again seeing banks behave in a way that raises civil
rights concerns," said Shanna L. Smith, NFHA President
and CEO. "By failing to maintain properties in
African-American neighborhoods in the same way that
they maintain similar properties in white
neighborhoods, banks are undervaluing properties and
helping to stall economic recovery in our nation's
neighborhoods of color. Banks that own foreclosed homes
have a fiduciary duty to their investors to secure a
fair price for the homes, and they have an obligation
to neighborhoods and communities to maintain those
homes. Following best practices will help stabilize
property values, encourage community reinvestment and
increase the local tax base at a crucial time in our
economic recovery."

The groups contend that banks risk violating the Fair
Housing Act when they fail to maintain bank-owned homes
in African-American and Latino neighborhoods, as they
must provide these services without regard to the race
or national origin of residents living in the areas in
which the properties are located. The Fair Housing Act
makes it illegal to discriminate based on race, color,
national origin, religion, sex, disability or familial
status. This law applies to housing and housing-related
activities, which include the maintenance, appraisal,
listing, marketing and selling of homes.

The report concludes with several recommendations:

Banks must take affirmative steps to maintain, market,
and sell all properties they own, according to fair
housing best practice standards; Federal regulators and
enforcement agencies must examine the ways in which
banks and the vendors that they hire conduct this
business; and Local municipalities and residents must
remain vigilant to ensure that the concentration of
bank-owned properties is not impeding fair housing
choice.


"The pattern of neglect of REO properties in African
American neighborhoods in the Miami Valley Ohio area is
unmistakable. The negligence of lenders in maintaining
these properties not only devalues the private
investment of neighboring properties but also
jeopardizes the thousands, and in some cases millions
of dollars of public money - Community Development
Block Grant and HOME dollars, that have been invested
by the City of Dayton and Montgomery County in an
attempt to stabilize these neighborhoods that have been
historically redlined, and grossly underserved by the
lending industry." - Jim McCarthy, President and CEO,
Miami Valley Fair Housing Center

"The findings in New Haven and Hartford have important
implications for Connecticut's cities and towns. Poorly
maintained housing is difficult to sell, remains off
the tax rolls longer, causes blight to neighborhoods,
and costs cities and towns thousands of dollars to
secure or demolish these neglected properties. The
Connecticut Fair Housing Center urges the lending
industry to be responsible citizens and maintain their
properties in neighborhoods of color the same way they
are maintaining properties in white neighborhoods." -
Erin Kemple, Executive Director, Connecticut Fair
Housing Center

___________________________________________

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