A Wall street Journal report indicated that the National Fair Housing Alliance and 19 local fair housing organizations have accused Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) for neglecting minority neighborhoods. In a discrimination complaint filed with the U.S. Department of Housing and Urban Development, the group has alleged that the housing company has different approach towards maintaining and marketing its foreclosed properties in affluent and middle and working class neighborhoods.
The discriminating practices
In response, Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) has dismissed the allegations stating that it follows the same quality control measures for their foreclosed properties, irrespective of its relation to the class of neighborhood. However, the group has supported its complaint along with a five-year investigation report highlighting the housing company’s practices.
The said investigation report signaled that Fannie Mae property maintains and markets the white neighborhoods while leave the foreclosed properties in working-class black and Latino neighborhoods unattended. As a result, those properties are surrounded by a pile of trash, debris and dead animals, which find few takers.
The group detailed that 22% of Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)’s properties in minority neighborhoods suffer from 10 or more problems, while only 8% of properties in white neighborhoods have these many issues. The group added that the company’s neglect is costing the neighboring property owners, who are witnessing a depreciation in their property value. However, Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) has steered away from such statements stressing on its stringent quality control methods.
The group has raised demand from Fannie Mae to comply with its responsibilities as stated under the Fair Housing Act and employ more companies to take care of the neighborhood. Also, the group is seeking money to fund local community programs. The stock of Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) was down by nearly 5.40% to $2.63 as 4.55 million shares traded hands.