LOS ANGELES, Calif. – Los Angeles is suing JPMorgan Chase for mortgage discrimination that the city says led to a wave of foreclosures that blighted neighbourhoods, reduced property taxes and increased the need for costly city services.
The city attorney’s lawsuit, filed Friday in federal court, says 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.
JPMorgan says it’s disappointed the city attorney is taking what it calls an “adversarial approach” to problems caused by an economic downturn that were beyond the bank’s control.
The city attorney filed similar lawsuits in December against Bank of America, Wells Fargo and Citigroup. They have all denied the allegations.