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.

Wells Fargo & Co, Citigroup Inc and Bank of America Corp also face lawsuits by Los Angeles and Miami for allegedly giving minorities home loans they could not afford, resulting in massive defaults.

The banks have contested the claims, saying they have records as responsible lenders.

Among major cities, Miami has led the country in foreclosures, and JPMorgan’s practices contributed to its problems, Friday’s lawsuit alleged.

Loans in predominantly minority neighborhoods in Miami were about 4.6 times more likely to result in foreclosure than loans in neighborhoods with a majority of white residents, the lawsuit said.

Miami is still being damaged because of the services needed to combat unsafe and dangerous conditions, crime and even gang activity at foreclosed properties, the lawsuit said. Read more.

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5 thoughts on “City of Miami Files Housing Discrimination Suit Against JPMorgan Chase

  1. kasie73 on said:

    banks are damned if they do, damned if they don’t. The person applying for the loan bears some responsibility for being able to afford the payments.

  2. We need ta stop asking banks for money stop using credit black people even for buying home! Stop! Sacrifice…save money why can you sacrifice buying clothes or videos eating out stuff like money for your house..Stop trying to buy $300k houses..Why can’t your family save $150 for the next 5-10 yrs? Get together with family & buy a home with your siblings..Problem is we need to learn how to work & live together. Stop asking banks for money..if you & your spouse earn $50k or more a year there’s no reason you can’t save $30 a year..All things are possible to him that believes! Be content with a small house $150..that’s good enough. Banks & creditors Love & hate us at the same time. If you are on time with your mortgage payments still they try to rip us off….they rip off everybody not just black just know other people are going thru the same thing in this world. If you can’t pay your mortgage they act like somebody committed a forget em’! Save money.

  3. When are we going to say Ok I’m fed up..I’m going to open my own bank. I don’t believe Dr. Dre or Michael Jordan ever ponder that thought. Our billionaires to busy chasing women & stacking their own bank. Stop blaming white folk for everything We got money..We need ta get down to business & stop playing games even after retirement. Shouldn’t we be asking our own people for money by now? O so what you saying is I can’t borrow no money?! Lol

    • straightnochaser on said:

      You got that right! Our spending power is nearly $1 trillion dollars. As a people, we’d be one of the wealthiest countries in the world, therefore, we need to start owning ourselves instead of everybody owning us because of who and what we owe.

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