Baltimore officials and lenders file lawsuits over housing and rental issues

The City of Baltimore has filed a lawsuit against property-management software companies Yardi Systems, RentCafe, and apartment manager Pennrose Management Company. The city alleges that the defendants violated Baltimore’s Consumer Protection Ordinance by steering renters toward fee-generating payment methods while concealing the costs. According to the complaint, fees were often hidden behind multiple clicks or fine print, with amounts only disclosed at the end of the payment process. The lawsuit seeks restitution, civil penalties, and an injunction, noting that hundreds of local properties, including nearly 50 income-restricted buildings, use the RentCafe platform.

Separately, two federal lawsuits have been filed in Maryland accusing New York-based real estate investors of an alleged mortgage fraud scheme involving Baltimore rowhouses. The lawsuits claim that investors purchased distressed homes at low prices, resold them to related companies at significantly inflated prices, and borrowed against these appraisals before defaulting. Lenders AmeriTrust Mortgage Corp., RCN Capital, and Commercial Lender are seeking millions in damages. The lenders report that approximately 150 homes involved in the alleged scheme have already entered foreclosure, impacting neighborhoods sensitive to housing instability.