The Los Angeles city attorney is suing Bank of America for mortgage discrimination it claims led to a wave of foreclosures that cost the city a fortune in extra expenses and lost taxes.
The suit, filed Friday in federal court, claims B of A redlined minority neighborhoods for years, then turned around and gave blacks and Hispanics predatory home loans that they couldn’t afford. The suit claims those borrowers were forced into foreclosure when the housing bubble burst and they were denied refinancing.
The city attorney filed similar lawsuits on Thursday against Wells Fargo & Co. and Citigroup Inc. They deny the allegations and say they’re committed to fair lending.
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