Miami Sues Big Banks Over Discriminatory Mortgage Lending

December 19, 2013
mortgage lending news

The city of Miami, Fla., is suing Bank of America, Wells Fargo, and Citibank in U.S. federal court in Florida, accusing the lenders of mortgage discrimination against minority residents that led to a local foreclosure epidemic.

Filed on Dec. 13, the complaints accuse the banks of engaging in mortgage discrimination in the city since at least 2004, violating the U.S. Fair Housing Act of 1968. The banks allegedly engaged in "redlining" by refusing to extend mortgage credit to minority borrowers on the same terms as other borrowers and allegedly extended credit on predatory terms and placed vulnerable borrowers in unaffordable loans. The lawsuits say these practices prompted foreclosures in minority neighborhoods that, in turn, affected Miami's property tax revenues.

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