The city of Miami is taking JPMorgan Chase & Co, the country’s biggest bank, to court based on major claims of housing discrimination against its residents of color.
In a lawsuit filed Friday, the city accuses JPMorgan of predatory mortgage lending in neighborhoods occupied predominately by people of color, violating the U.S. Fair Housing Act. Reps for the city claim that the alleged discriminatory practices caused a wave of foreclosures that have negatively effected the city long term. Reuters reports:
After issuing high-cost loans to minorities in the years before the housing crisis, JPMorgan later refused to refinance the loans on the same terms as it extended to whites, leading to defaults and foreclosures, the complaint said.
The lawsuit came just weeks after the city of Los Angeles filed similar claims against JPMorgan, seeking to recoup damages for lost tax revenue and increased city services needed in blighted neighborhoods.
“The Miami City Attorney’s claims are baseless and stand contrary to our long record of providing affordable housing to low- to moderate-income families across the region,” JPMorgan spokesman Jason Lobo said. The bank will defend itself against the claims, he said.