An undercover investigation allegedly revealed the way financial giant Bank of America maintains and markets foreclosed homes is different in predominantly Caucasian neighborhoods compared to African-American and Latino neighborhoods. The company now faces allegations that it violated the Fair Housing law that applies to housing and housing-related activities, which includes the maintenance, appraisal, listing, marketing and selling of homes.

The investigation of 373 foreclosed homes in eight metropolitan areas owned, serviced or managed by Bank of America prompted a complaint that was filed September 25, 2012 with the U.S. Department of Housing and Urban Development. The complaint sparked an undercover investigation that allegedly found that Bank of America engaged in a systematic practice of maintaining the bank-owned properties in a ‘state of disrepair’ in minority communities while marketing and maintaining properties in predominantly white communities was far superior.

This is not the first time discrimination allegations have been brought upon financial giants; NFHA filed HUD complaints against Wells Fargo and U.S. Bancorp in recent years.

To see additional statistics or to read the HUD administrative complaint against Bank of America click here. For more on other commercial real estate litigation matters, call (312) 223-1699 or contact us.

*Source: The Sacramento Bee