MIAMI – The city of Miami claims in a new lawsuit that JP Morgan Chase engaged in discriminatory lending practices for years that worsened the foreclosure crisis in minority neighbourhoods.
The lawsuit filed last week in Miami federal court claims the bank has engaged in prohibited lending practices since at least 2004. The city says loans were disproportionately made in black and Hispanic neighbourhoods with burdensome terms, leading to a far greater rate of foreclosures.
Miami is seeking unspecified damages and an order prohibiting JP Morgan from continuing to make racially discriminatory loans. Bank spokesman Jason Lobo says the lawsuit has no merit and that JP Morgan has a strong record of providing housing to low- and moderate-income families in South Florida.
The city of Los Angeles recently filed a similar lawsuit.