JPMorgan Chase Sued by Los Angeles Over Foreclosures

June 2, 2014

Los Angeles is suing JPMorgan Chase for mortgage discrimination that the city says led to a wave of foreclosures that blighted neighborhoods, reduced property taxes and increased the need for costly city services.

The city attorney’s suit, filed Friday in federal court, claims the bank gave black and Latino borrowers predatory home loans that they couldn’t afford, leading to foreclosures when the housing bubble burst and they were denied refinancing.

Messages to JPMorgan Chase representatives seeking comment weren’t immediately returned.

The city attorney filed similar lawsuits in December against Bank of America, Wells Fargo and Citigroup. They’ve all denied the allegations.

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Latest Comments

  • June 3, 2014 at 10:19 pm
    LowCreditScore says:
    This is a prime example of government meddling .... up an industry. In the 70's and 80's, the feds accused banks of "red-lining", or the refusal of financial institutions to i... read more
  • June 2, 2014 at 4:55 pm
    SWFL Agent says:
    Thought I had seen at all on this foreclosure mess. I'll bet the city had no trouble with "inflated" property values at the time these loans were given. There was no discrimin... read more
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