Early in 2010, stories of erroneous foreclosures began surfacing across the nation. While alarming at first, these stories became more and more common until the day came when almost every news station nationwide was covering the epidemic. Four years have passed since then, yet we still face many of the unresolved issues left in the wake of the foreclosure crisis. Recently though, the city of L.A. has been making an effort to combat these problems via a series of lawsuits against some of the mega lenders who are believed to have ignited the flame. Their most recent target – JPMorgan Chase.
In a lawsuit filed on May 30, 2014, in U.S. District Court, the Los Angeles city attorney alleged that the nation’s largest bank “engaged in a continuous pattern and practice of mortgage discrimination in Los Angeles.” It’s believed that the bank has been imposing different terms or conditions on a discriminatory and legally prohibited basis since as early as 2004.
This newest lawsuit coincides with similar claims against banking giant Wells Fargo, which we covered in our recent story “Wells Fargo Faces Discriminatory Lending Claims”.
The JPMorgan suit claims the mortgage crisis resulted in over 200,000 foreclosures in Los Angeles from 2008 through 2012, a wave that depressed property values, in turn costing the city $481 million in property tax revenue and an additional $1.2 billion in safety inspections, police and fire calls, trash removal and property maintenance for those foreclosures.
The JPMorgan lawsuit, like the others, accuses the bank of placing minority borrowers into riskier loans than it did to “similarly situated” white borrowers. Those loans caused a disproportionate number of foreclosures in minority neighborhoods compared to white neighborhoods, according to the city.
That practice continues “through the present and has not terminated,” the city alleged.
A verdict has yet to be found in this matter, but what do you think about this suit?
You can read the full story here: