The National Fair Housing Alliance, Housing Opportunities Made Equal, and Fair Housing Continuumfiled a discrimination complaint with the Department of Housing and Urban Development, alleging that Cyprexx Services failed to properly maintain real estate owned properties in African American and Latino neighborhoods in Baltimore, Maryland; Kansas City, Missouri; Orlando, Florida; and Richmond, Virginia.
A Cyprexx source said the company was not made aware of any complaints and the NFHA, to his knowledge, never reached out. And this is not the first time the NFHA decided to take aim at a field service provider.
The NFHA typically uses this type of shoot-first tactic. When asked whether Cyprexx was notified of the investigation prior to the complaint being filed, the NFHA said it does not contact the subjects of its investigations.
“We have contacted Fannie Mae about these types of issues in the past,” said Shanna Smith, president and CEO of the National Fair Housing Alliance. “We expected Fannie to contact their vendors to address these issues. We expect Cyprexx knew about this. We are taking administrative action to remedy these issues as quickly as possible.”
The alliance, in the past, also targeted big lenders, such asBank of America, as well as online real estate market places, such as Zillow and Trulia.
Today it is Cyprexx’s turn.
The consortium of housing advocacy groups surveyed nearly 175 properties in the four cities and found that theFannie Mae-owned properties in minority neighborhoods were in much worse condition than those in predominantly white neighborhoods.
“Fannie Mae is allowing its contractors to treat homes in communities of color very poorly,” Smith said. “Cyprexx is required by federal law to maintain foreclosures without regard to the racial makeup of the neighborhood, but the evidence we uncovered flies in the face of that obligation. Unfortunately, this complaint addresses merely the latest in long pattern of discrimination by Fannie and its contractors.”