Housing groups accuse Fannie Mae REO contractor of racial discrimination

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The National Fair Housing Alliance and two other civil rights groups have filed a discrimination complaint against Fannie Mae contractor Cyprexx Services alleging that the company failed to properly maintain bank-owned homes in Latino and African-American neighborhoods in four U.S. cities.

The complaint, filed with the U.S. Department of Housing and Urban Development, alleges that Cyprexx did a better job maintaining homes in white neighborhoods than in minority areas within Baltimore, Maryland; Kansas City, Missouri; Orlando, Florida; and Richmond, Virginia.

The complaint is the first time Cyprexx had heard of the allegations, a Cyprexx source told Housing Wire.

The NFHA has a history of targeting banks for discriminatory practices related to upkeep of homes they own. In June 2013, Wells Fargo agreed to pay $42 million to settle a complaint the NFHA filed in April 2012.

In December, American Banker published a report that questioned the legitimacy of some of NFHA’s discrimination claims. Source: Housing Wire