Lack of Federal Civil Rights Enforcement Contributed to Foreclosure Crisis

National Fair Housing Alliance to Release Report Detailing Low Level of Enforcement by Federal Government in 40 Years since Passing Landmark Housing Legislation

This Friday marks the 40th anniversary of passage of the federal Fair Housing Act, the broadest and least enforced of our nation's civil rights laws. Although more than 3.7 million people are discriminated against in housing transactions every year, the U.S. Department of Housing and Urban Development issued only 31 charges of discrimination in 2007 and the Department of Justice filed just 35 cases.

On April 11, 1968, just days after the assassination of Dr. Martin Luther King, Jr., Congress passed and the President signed into law the federal Fair Housing Act, which now prohibits discrimination in housing based on race, national origin, religion, color, sex, familial status, and disability.

Tomorrow, the National Fair Housing Alliance (NFHA) will issue its 2008 Fair Housing Trends Report, documenting how communities remain segregated and discrimination continues 40 years after this landmark civil rights legislation was passed. The report, which catalogues widespread under-enforcement of federal fair housing and lending laws, highlights the link between the lack of fair housing enforcement and our current foreclosure crisis.

'Lack of federal oversight of the work of mortgage lenders and brokers has led us to today's foreclosure crisis,' said Shanna L. Smith, President and CEO of the National Fair Housing Alliance. 'An important part of this negligence has been the government's lack of commitment to enforce the fair housing laws,' she added. 'HUD's and Justice's paltry performance gave the green light to discrimination by both prime and sub-prime lenders nationwide.'

The 2008 Trends Report finds that private fair housing centers processed more than 60 percent of the fair housing complaints throughout the country. The total number of complaints filed, however, still represents less than one percent of the annual incidence of discrimination, which is estimated by a 2004 NFHA-commissioned study to be more than 3.7 million, against African-Americans, Latinos, Asian Pacific Islanders, and Native Americans alone.

In the face of countless studies demonstrating the targeting of minority homebuyers by unscrupulous lenders, the Department of Housing and Urban Development has initiated only three investigations since 2006 and has processed only 137 fair lending complaints. The Department of Justice filed only four cases in 2007. Combined, this amounts to only 10 percent of the cases that private groups have filed.

'Private fair housing groups with minimal resources have processed 10 times more fair lending complaints than the federal government,' continued Smith. 'How is this possible? This is inexcusable.'

NFHA's report also finds that past and ongoing discriminatory practices in the nation's housing and lending markets have produced extreme levels of residential segregation that result in significant disparities in access to good jobs, quality education, homeownership attainment and asset accumulation between minority and non-minority households. It also clearly demonstrates how segregation has damaged our economy as well as our global competitiveness.

'On this 40th anniversary of the Fair Housing Act, we must live up to the dream of Dr. King by using the powerful tool of fair housing enforcement to the fullest extent possible,' continued Smith. 'This doesn't mean passing any new laws - this just means enforcing the ones we already have.'

For a copy of the 2008 Fair Housing Trends Report, or to learn more about the National Fair Housing Alliance, visit us at www.nationalfairhousing.org.

Founded in 1988 and headquartered in Washington, DC, the National Fair Housing Alliance is a consortium of more than 220 private, non-profit fair housing organizations, state and local civil rights agencies, and individuals from throughout the United States. Through comprehensive education, advocacy and enforcement programs, NFHA protects and promotes residential integration and equal access to apartments, houses, mortgage loans and insurance policies for all residents of the nation.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.

Shanna Smith

Cathy Cloud

Jim McCarthy

Lisa Rice

To commemorate this critical piece of legislation in the coming weeks,
the National Fair Housing Alliance will host audio press conferences in
five cities (Chicago, Houston, Los Angeles, Boston and Cleveland), with
members of Congress, local and national NFHA leaders and victims of
discrimination to discuss the state of fair housing in their communities. The
first call will be Tuesday, April 8, at 3:00 - 3:30 p.m. EST and will feature
Senator Dick Durbin (D-IL).
First Call Analyst:
FCMN Contact:

Source: National Fair Housing Alliance

CONTACT: Deidre Swesnik of National Fair Housing Alliance,
+1-202-277-4437

Web Site: http://www.nationalfairhousing.org/