JPMorgan Chase, the nation's biggest bank, is being sued by the city of Miami for engaging in mortgage discrimination for at least the past 10 years.
The bank approved high-cost loans to minorities in the years leading up to the housing bust but later allegedly declined to refinance those mortgages under the same terms that it extended to white borrowers. The result was a spate of defaults and foreclosure in the city's minority communities, according to the complaint, which notes that loans in minority neighborhoods in Miami were roughly 4.6 times more likely to end in foreclosure than loans in predominantly white areas.
The litigation was filed on June 13, mere weeks after the city of Los Angeles lodged similar claims against JPMorgan. Wells Fargo, Citigroup, and Bank of America also are being targeted in similar cases.