The lawsuit alleges racial discrimination by Fannie Mae in the maintenance of its real estate owned (REO) properties.
The groups assessed the conditions of Fannie Mae properties in 38 metropolitan areas throughout the country over several years’ time and concluded that Fannie Mae fails to maintain its properties in middle- and working-class African American and Latino neighborhoods to the same level of quality it does for those it owns in white middle- and working-class neighborhoods. Fannie Mae’s poor property maintenance in communities of color negatively impacts the neighborhood image and diminishes area property values by resulting in lower sales prices.
Findings for the Cleveland Metropolitan Area revealed:
- 46.7% of Fannie Mae’s REO properties in communities of color had trash or debris on the premises;
- 46.7% of Fannie Mae’s REO properties in communities of color had overgrown or dead shrubbery; and,
- 40.0% of Fannie Mae’s properties in communities of color had unsecured, broken, or boarded windows.
To view the national press release and local PowerPoint Presentation, click the links below: