Congressional Leaders Urge FHFA To Investigate Fannie and Freddie Contractors

REO FHFA U.S. House Senate Banking Committee

On December 11, Representatives Cummings (D-MD), Waters (D-CA), and Moore (D-WI) led the effort to submit a letter to FHFA’s IG requesting that the agency conduct a comprehensive audit to determine if Fannie and Freddie “are taking adequate steps to ensure that preservation companies maintain or service REO properties in compliance with the requirements of the Fair Housing Act.” The letter, which was signed by a total of 26 House Members, suggested that companies contracted by Fannie and Freddie to maintain their REOs provide inferior service within African-American, Latino, and other non-Caucasian communities. The Representatives’ allegations stem from National Fair Housing Alliance (NFHA) research, in addition to complaints filed with HUD and several U.S. banks. Moreover, the letter comes directly after the December 9 Senate Banking Committee hearing, “Inequality, Opportunity, and the Housing Market,” during which Deborah Goldberg, Special Project Director of NFHA, addressed that REOs are managed differently based on the community of the property.