Los Angeles Sues JPMorgan Over ‘Predatory’ Mortgages To Minorities – 2 June 2014

RT logoThe City of Los Angeles has charged JPMorgan Chase & Co. with imposing discriminatory loan conditions that minority borrowers couldn’t afford, creating a foreclosure crisis that hit property values by $78.8 bn and created a $481 mn loss in tax revenue.

LA City Attorney Mike Feuer accused the US’s largest bank of engaging in “a continuous pattern and practice of mortgage discrimination in Los Angeles since at least 2004, by imposing different terms or conditions on a discriminatory and legally prohibited basis,” according to the lawsuit filed in a US District Court.

Los Angeles said JPMorgan loans made between 2004 and 2011 in predominantly black or Hispanic neighborhoods were 2.19 times more likely to go into foreclosure than loans in mainly white areas. The bank is charged with driving low-income home buyers into costly “subprime loans” – complete with perplexing small print conditions – when other more attractive lines of credit were readily available.

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