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Citigroup and Wells Fargo were accused of discriminatory mortgage lending by the city of Los Angeles, which seeks damages for reduced property tax revenue and the costs of maintaining foreclosed properties.
December 6 -
Despite complaints from bankers that the controversial legal theory is unfair, many lawmakers said it has been a useful tool in combatting discrimination.
November 19 -
A fair-housing group is trying to crank up the pressure on Bank of America to settle claims that the bank discriminated against minorities by failing to maintain foreclosed properties.
September 25 -
The U.S. Department of Housing and Urban Development is charging Fifth Third with discriminating against a couple with disabilities who were attempting to refinance their mortgage.
August 23
The city of Los Angeles filed a lawsuit against Bank of America (BAC) Friday, accusing the company and its Countrywide unit of engaging in discriminatory mortgage lending.
Bank of America "not only refused to extend credit to minority borrowers when compared to white borrowers, but when the bank did extend credit, it did so on predatory terms," according to a
The complaint alleges that Countrywide charged African-American and Hispanic borrowers higher fees and costs beginning in at least 2004. Bank of America acquired Countrywide in 2008.
Bank of America also denied minority borrowers the opportunity to refinance subprime mortgages, the complaint said. These practices allegedly contributed to a spike in foreclosures in L.A. neighborhoods. The resulting decline in property values has cost the city an estimated $481 million in property tax revenue in the wake of the housing crisis, according to a report cited in the complaint.
The city has also spent an estimated $1.2 billion on safety inspections, property maintenance and other expenses related to foreclosures, according to the complaint.
A Bank of America spokesman denied the allegations Monday, saying that "there is no basis for the city's claims."
"We have a firm commitment and strong track record for fair lending," the spokesman said in an email. "We responded with urgency to rising mortgage defaults that resulted from the country's severe economic downturn and the personal financial hardships unemployment and underemployment, divorce, and medical disability, chief among them - that resulted for so many Americans."
The city
