Complaint Filed by NFHA Against Deutsche Bank for Handling of Foreclosed Homes in Minority Neighborhoods
The watchdog group National Fair Housing Alliance (NFHA) filed a complaint on Tuesday with the U.S. Department of Housing and Urban Development alleging that Deutsche Bank was exercising racial bias in the manner in which it treated foreclosed homes in different neighborhoods.
The group says that homes foreclosed on in white neighborhoods were routinely maintained and marketed with more care than homes in black and Latino neighborhoods, where they say the same bank allowed homes to fall into disrepair and remain vacant. The complaint listed 130 properties in Memphis, Chicago and Washington, D.C.
"In predominantly African-American and Hispanic communities, Deutsche Bank is not a particularly good neighbor," said Open Communities Executive Director Gail Schecter to the Chicago Sun-Times. Open Communities is located in Winnetka, a suburb of Chicago.
The complaint lists a litany of problems from overgrown lawns to broken windows, which the group said are consistently more problematic in minority neighborhoods.
The bank repudiates the claims in the complaint, saying that it is not the party responsible for the conditions listed and does not engage in discriminatory behavior.
"Deutsche Bank as trustee does not select, hire or compensate the loan servicers, nor does it have any role in, or oversight over, the actions the servicers take in connection with foreclosed properties," Deutsche Bank spokeswoman Renee Calabro said in a statement, according to Reuters.
The NFHA has taken similar action against other banks as well as independent developers. In November, the NFHA announced a similar multi-city action against Bank of America.
"Vacant homes are not just an eyesore for neighborhoods-they are a serious public health concern," Rebecca Morley, Executive Director of the National Center for Healthy Housing said in a statement regarding that case.
"Research shows that vacant homes are linked to residential fires, rodent infestations, lead exposure, crime, mental health issues, and even have been implicated in asthma and obesity."