City of LA accuses JPMorgan of "mortgage discrimination"; seeks damages

Nathan Andrada – Fourth Estate Cooperative Contributor

Los Angeles, CA, United States (4E) – The City of Los Angeles sued JPMorgan Chase, accusing the U.S. bank of selling higher risk loans to minorities, which helped trigger the housing crisis.

The city seeks to recover damages for lower tax revenues, saying that the wave of foreclosures led to lower property values, and for the additional money it spent for services to address the impact of the foreclosures.

In its lawsuit filed in the federal court Friday, Los Angeles described the bank’s actions as “mortgage discrimination,” as it imposed different terms or conditions that were discriminatory as well as legally prohibited. The suit did not specify a requested amount for damages.

The latest legal action comes after similar complaints against Citigroup, Bank of America and Wells Fargo in December.

JPMorgan denied the charges and has said that it would “vigorously” defend itself against the latest lawsuit.

LA officials said the bank refused to issue mortgages to minority borrowers, while it approved loans for white borrowers that have similar credit history.

Article © AHN – All Rights Reserved
About the Author

Leave a Reply