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Financial Services Law Insights and Observations

Fair Housing Groups File First REO Complaint

Mortgage Servicing Fair Housing


Last week we posted about plans by the National Fair Housing Alliance and certain of its member organizations to file administrative complaints and/or lawsuits against multiple financial institutions for alleged discriminatory practices with regard to real estate owned (REO) properties in violation of the Fair Housing Act. Yesterday, the first such complaint was filed with the Department of Housing and Urban Development. The filing triggers a process through which HUD will now conduct its own investigation of the issues presented. The complaint is based on an NFHA report released earlier this month, which overlooks key considerations with regard to servicer management of REO properties. In announcing this complaint, NFHA indicated another will be filed next week. Servicers should expect several additional complaints in the coming weeks and months.