WASHINGTON Feb 25 Foreclosed houses managed by
Deutsche Bank in black and Latino neighborhoods had
more broken windows, damaged roofs, overgrown lawns and trash in
the yard than those it managed in nearby white neighborhoods, a
nonprofit group said in a complaint to federal officials on
The bank took much better care of foreclosed homes in white
neighborhoods, and also marketed them more effectively, said the
National Fair Housing Alliance, which filed its accusations with
the U.S. Department of Housing and Urban Development.
The alliance has filed similar complaints against Bank of
America and U.S. Bancorp.
In the complaint, the group and three members said it
investigated around 130 properties in Washington, D.C., Memphis,
Tennessee, and Chicago, Illinois, and found Deutsche Bank put
more effort into upkeep of homes in primarily white areas.
In scrutinizing the foreclosed properties for problems, the
group said it found significant disparities in the maintenance
and marketing in all three metropolitan areas based on the
primary race of the neighborhoods.
Deutsche Bank said it does not engage in activities alleged
in the complaint and said loan servicing companies are solely
responsible for the foreclosed properties.
"Deutsche Bank as trustee does not select, hire or
compensate the loan servicers, nor does it have any role in, or
oversight over, the actions the servicers take in connection
with foreclosed properties," said Renee Calabro, a Deutsche Bank
spokeswoman, in a statement.
A HUD spokesman declined to comment on the investigation.
Last June, Wells Fargo & Co agreed to pay $42
million to resolve allegations that it failed to maintain
foreclosed homes in minority neighborhoods, but it denied the
allegations in settling the case.