City of Miami sues JPMorgan for mortgage discriminitation
The聽city聽of聽Miami聽has sued JPMorgan Chase & Co, accusing the bank of predatory mortgage lending in minority neighborhoods that allegedly caused a wave of foreclosures during the last decade's housing crisis.
The lawsuit, filed on Friday in federal court in聽Florida, said the country's largest bank engaged in a continuous practice of discriminatory mortgage lending since at least 2004, violating the US Fair Housing Act.
After issuing high-cost loans to minorities in the years before the housing crisis, JPMorgan later refused to refinance the loans on the same terms as it extended to whites, leading to defaults and foreclosures, the complaint said.
The lawsuit came just weeks after the聽city聽of Los Angeles filed similar claims against JPMorgan, seeking to recoup damages for lost tax revenue and increased聽city聽services needed in blighted neighborhoods.
"The聽Miami聽City聽Attorney's claims are baseless and stand contrary to our long record of providing affordable housing to low- to moderate-income families across the region," JPMorgan spokesman聽Jason Lobo聽said. The bank will defend itself against the claims, he said.
Wells Fargo聽& Co, Citigroup Inc and Bank of America Corp also face lawsuits by Los Angeles and聽Miami聽for allegedly giving minorities home loans they could not afford, resulting in massive defaults.
The banks have contested the claims, saying they have records as responsible lenders.
Among major cities,聽Miami聽has led the country in foreclosures, and JPMorgan's practices contributed to its problems, Friday's lawsuit alleged.
Loans in predominantly minority neighborhoods in聽Miami聽were about 4.6 times more likely to result in foreclosure than loans in neighborhoods with a majority of white residents, the lawsuit said.
Miami聽is still being damaged because of the services needed to combat unsafe and dangerous conditions, crime and even gang activity at foreclosed properties, the lawsuit said.
Wells Fargo聽and Citigroup recently lost bids to have their lawsuits tossed.
A spokesman for the聽city聽of聽Miami聽did not immediately return a request for comment.
JPMorgan shares fell 0.2 percent to $56.91.
The case is聽City聽of聽Miami聽v JPMorgan Chase & Co, US District Court, Southern District of聽Florida, No 14-cv-22205
