Los Angeles sues Wells Fargo and Citigroup, says mortgage discrimination led to foreclosures | North Salem NY Real Estate
The Los Angeles city attorney sued Wells Fargo and Citigroup on Thursday, alleging the companies engaged in mortgage discrimination that led to a wave of foreclosures in minority communities during the housing crash.
The twin lawsuits, filed in federal court, are the latest fallout from the 2008 collapse of the subprime mortgage industry, which sparked a string of actions against various lenders by federal agencies and city governments.
The city attorney's suits allege a "continuing pattern of discriminatory mortgage lending practices" in Los Angeles that violate the federal Fair Housing Act. They claim Wells Fargo & Co. and Citigroup Inc. at first refused to grant mortgages in minority neighborhoods — a practice known as redlining — and later targeted black and Hispanic neighborhoods for predatory loans, known as reverse redlining.
Wells Fargo and Citigroup both said the suits are meritless.
http://www.startribune.com/housing/234697691.html
The twin lawsuits, filed in federal court, are the latest fallout from the 2008 collapse of the subprime mortgage industry, which sparked a string of actions against various lenders by federal agencies and city governments.
The city attorney's suits allege a "continuing pattern of discriminatory mortgage lending practices" in Los Angeles that violate the federal Fair Housing Act. They claim Wells Fargo & Co. and Citigroup Inc. at first refused to grant mortgages in minority neighborhoods — a practice known as redlining — and later targeted black and Hispanic neighborhoods for predatory loans, known as reverse redlining.
Wells Fargo and Citigroup both said the suits are meritless.
http://www.startribune.com/housing/234697691.html
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