Friday, December 13, 2013

So Now It's Los Angeles To Sue Some Banks

The city of Los Angeles is filing lawsuits agains Citi, Wells, and B of A saying that these three behemoth banking institutions did discriminatory lending practices between 2008 and 2012 that cost the city of L. A. more than 1.2 Billion.

L. A. city attorney, Mike Feuer, said "These lawsuits send the firm message that we will use every tool at our disposal to fight for all Los Angeles taxpayers and neighborhoods."

He feels that the banks discriminated in their mortgages since at least 2004 by imposing different terms or conditions. The lawsuits charge all three banks with redlining and reverse redlining. (refuse a loan to someone because they live in an area deemed to be a poor financial risk)

Hmmmmm I say..... All of the banks, needless to say, are strongly denying this practice.

Now, I can't say I wouldn't be surprised if the banks didn't lend due to appraisal issues on bad properties. Nor could I say that I'd be even less surprised if there were loan brokers that did commit Redline infractions and those loans were then subsequently sold to B of A, Citi, or Wells.

Regardless, I understand the frustration, but I still believe that it will just trickle back down to the consumer even if the suits are won. As well, of course, as the cost to sue these big dogs.

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