Mayor Brandon M. Scott has initiated a fair housing probe into a mortgage fraud scheme that has been putting Baltimore homeowners at risk of foreclosure. The investigation, announced by the Mayor and backed by the Baltimore City Law Department along with the City's Office of Equity and Civil Rights, is delving into potential Fair Housing Act violations by out-of-state investors. According to the Baltimore City Mayor's Office, these schemes included misusing debt service coverage ratio (DSCR) loans, leading to several foreclosures within the city. The Department of Housing and Community Development (DHCD) has performed a comprehensive assessment of properties affected since June 2025, flagging those with Vacant Building Notices, code violations, and other risk indicators.
In his public statement, Mayor Brandon M. Scott declared, "Protecting Baltimoreans is my number one job as Mayor, and that means going after anyone who tries to defraud our residents - especially from outside of the city." The Mayor's tough stance comes as the city vows to hold the perpetrators accountable. City Solicitor Ebony Thompson commented, "If you try to get rich by targeting our residents and abusing programs designed to repair historic harm, we are going to use every legal resource available to hold you accountable." These announcements signal the administration's commitment to not only identifying but also aggressively combating any fraudulent activities that destabilize local communities.
The Office of Equity and Civil Right's Director Amber Greene pointed out a disturbing trend in the location of the foreclosures. "As Baltimore's Chief Equity Officer, I could not help but notice when looking at the map of foreclosures, they were overwhelmingly located in the Black Butterfly," she pointed out in the city's press release. Greene's observations highlight a persistent pattern of financial schemes disproportionately impacting Black neighborhoods in Baltimore, known as the Black Butterfly, which spreads its wings across East and West Baltimore.
The City is currently filing actions to collect on unpaid taxes and liens against the property owners involved and is investigating to potentially bring a Fair Housing Act action against the investors.
