Wednesday, April 11, 2012

Housing Nonprofit Files Complaint Against Wells Fargo

A Washington, D.C.-based nonprofit filed a complaint against Wells Fargo with the U.S. Department of Housing and Urban Development (HUD).

According to a report from Reuters, the National Fair Housing Alliance (NHFA) accused the bank of failing to maintain foreclosed homes in minority neighborhoods. The nonprofit claimed that, when compared to houses in white areas, the foreclosed homes suffered from a lack of regular maintenance.

The complaint comes after NHFA completed years of investigations of Wells Fargo-owned properties in eight cities, including Atlanta, Baltimore, Dallas, and Miami. The complaint cites statistics to allege that the properties in white neighborhoods received much better care. For instance, NHFA reported that 56 percent of the foreclosed buildings surveyed in minority communities had significant trash build-up, compared with 30 percent in white areas.

A Wells Fargo spokesperson, Tom Goyda, responded to the complaint by saying that the bank conducts all lending activities in a consistent manner with no regard to race. He went on to say that, because the complaint does not cite specific properties, Wells Fargo cannot investigate the allegations in the areas NHFA lists.

You can read the full story in Reuters.

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