NFHA Accuses U.S. Bancorp Of Racial Disparity In REO Disposition

Posted by Orb Staff on April 18, 2012 No Comments
Categories : Mortgage Servicing

11350_usbancorp NFHA Accuses U.S. Bancorp Of Racial Disparity In REO Disposition The National Fair Housing Alliance (NFHA) and four of its member organizations have announced a federal housing discrimination complaint against U.S. Bancorp.

In a complaint filed with the U.S. Department of Housing and Urban Development, the NFHA claims that it investigated 177 foreclosed properties owned by U.S. Bank and determined that the financial institution ‘has engaged in a systemic practice of maintaining and marketing its foreclosed, bank-owned properties in a state of disrepair in communities of color while maintaining and marketing real estate owned (REO) properties in predominantly white communities in a far superior manner.’

‘Our findings underscore the obvious: properties that are poorly maintained not only lose value but have a higher likelihood of selling to an investor, rather than to a family,’ says Shanna L. Smith, NFHA president and CEO. ‘U.S. Bank is making it harder for the market to come back in communities of color.’

This is the NFHA's second REO-related discrimination charge this month; the organization has also accused Wells Fargo of similar practices.

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