Groups fault Deutsche Bank over foreclosed homes

April 30--A coalition of fair-housing groups has accused Deutsche Bank of poorly maintaining foreclosed properties in black neighborhoods in Hampton Roads and several other metro areas.

The National Fair Housing Alliance and five other groups accused the German bank of giving better attention to foreclosed homes in predominately white neighborhoods than those that are in neighborhoods whose residents are mostly black or Latino.

In a telephone news conference today, representatives of the groups said the alleged difference in upkeep is discriminatory and violates the national Fair Housing Act. They said other property owners in the minority neighborhoods affected are being hurt because poorly maintained bank-owned homes are dragging down property values and making it harder to obtain insurance.

A complaint filed in February with the U.S. Department of Housing and Urban Development accused the bank of discriminatory treatment in Chicago, Washington, D.C., and Memphis, Tenn. It will be amended to add Hampton Roads, Baltimore and Toledo, Ohio, the groups said.

In Hampton Roads, the groups said, they surveyed all 10 Deutsche Bank foreclosed homes: five in predominately black neighborhoods, five in predominately white neighborhoods. Of the homes in predominately black neighborhoods, three were in Hampton and two in Norfolk. Of those in predominately white areas, two were in Virginia Beach and one each was in Hampton, Newport News and Portsmouth.

A Richmond-based group, Housing Opportunities Made Equal of Virginia, conducted the research on the Hampton Roads homes and will join in the complaint.

An earlier complaint led by the National Fair Housing Alliance, a Washington-based nonprofit group, resulted in a $42 million settlement last year with Wells Fargo Bank, of which $27 million went to the alliance and other housing nonprofits. The alliance also has led complaints filed in the past six months against Bank of America and U.S. Bank over foreclosed homes -- including, in the case of U.S. Bank, homes in Hampton Roads.

Deutsche Bank has previously denied allegations of discrimination and said that loan servicing companies are responsible for the foreclosed properties.

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