Los Angeles Sues Bank of America, Alleging Mortgage Discrimination
LOS ANGELES -- The Los Angeles city attorney is suing Bank of America for mortgage discrimination it claims led to a wave of foreclosures that cost the city a fortune in extra expenses and lost taxes.
The suit, filed Friday in federal court, claims B of A redlined minority neighborhoods for years, then turned around and gave blacks and Hispanics predatory home loans that they couldn't afford. The suit claims those borrowers were forced into foreclosure when the housing bubble burst and they were denied refinancing.
A message seeking comment was left for representatives of Bank of America Corp. Friday evening. The city attorney filed similar lawsuits on Thursday against Wells Fargo & Co. and Citigroup Inc. They deny the allegations and say they're committed to fair lending.
Past reports about mortgage lending:
BofA to Pay $404 Million to Settle Mortgage Dispute
U.S. Judge Weighs Penalties After BofA Fraud Verdict
Mortgage Modifications Still Taking Banks Too Long, Report Says