Dec 6 The city of Los Angeles has filed a
lawsuit against Bank of America in U.S. federal court in
California, accusing it of discriminatory mortgage lending in
the city's minority communities.
The lawsuit, filed by City Attorney Michael Feuer, accused
the bank of engaging in a "continuous pattern and practice of
mortgage discrimination" since at least 2004, according to a
A spokesman for Bank of America could not immediately be
reached for comment.
The complaint alleged that the bank's practices led to a
wave of foreclosures in minority neighborhoods that continued to
hurt the city's property tax revenues and increased the need for
It seeks damages caused by the bank's alleged discriminatory
practices, including lost revenue.
Major banks are fighting multiple legal battles related to
their mortgage lending practices. On Monday, Bank of America
said it would pay $404 million to Freddie Mac to resolve
liabilities on home loans sold to the government-controlled
Friday's complaint accused the bank of refusing to extend
mortgage credit to minority borrowers on equal terms as offered
to other borrowers or extending credit on predatory terms. It
said the practices placed vulnerable borrowers in loans they
could not afford, including subprime loans.
Similar lawsuits were filed on Thursday against Citigroup
Inc and Wells Fargo. Spokeswomen for both banks
told Reuters the suits were without merit.
The case is City of Los Angeles v Bank of America Corp et
al, U.S. District Court, Central District of California