Prepare to Fight Suits Claiming Bias in REO Maintenance
American BankerAndrew L. Sandler, Aaron C. Mahler
As if they didn't face enough challenges already, banks and mortgage servicers now must prepare for the threat of litigation claiming bias in the maintenance of foreclosed properties.
The evidence presented so far for such claims is questionable, but the complainant has a track record of aggressive actions against financial services companies.
On April 4, the National Fair Housing Alliance published a report concluding that banks and mortgage servicers maintained repossessed homes in a discriminatory manner in nine major metropolitan areas.