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Fannie Mae discrimination lawsuit could have repercussions for agents

Some agents and brokers who list the GSE's homes could find themselves directly in the line of fire
  • On Dec. 5, the National Fair Housing Alliance (NFHA) filed a housing discrimination lawsuit against Fannie Mae alleging that it fails to keep up foreclosure properties in minority neighborhoods.
  • The NFHA’s lawsuit also seeks to enjoin some agents and brokers who work with Fannie Mae, said its president and CEO.
  • Since 2009, the NFHA and its partners investigated 2,300 foreclosure properties owned and maintained by Fannie Mae and collected evidence on 39 data points identified as important to protecting, securing and marketing the homes.

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Real estate agents and brokers who are listing agents for Fannie Mae, take note: A sweeping federal lawsuit accusing the government-sponsored enterprise (GSE) of neglecting foreclosure properties in predominantly minority neighborhoods could put you in the crosshairs of the Fair Housing Act. And if you’re an agent or a broker who has been trying to sell properties in areas where Fannie Mae has failed to maintain its foreclosure properties, you’ll want to pay close attention to this case, too. The lawsuit On Dec. 5, the National Fair Housing Alliance (NFHA) and 20 local fair housing organizations filed a housing discrimination lawsuit against Fannie Mae alleging that the GSE purposely fails to give foreclosures in African-American and Latino neighborhoods the same upkeep and attention it gives to comparable, real estate owned (REO) properties in white neighborhoods. The lawsuit, which seeks a trial by jury, alleges a pattern of “willful neglect” and racial discrimination...