JPMorgan sued by Miami over mortgage discrimination

At issue are alleged predatory lending practices in minority neighborhoods since at least 2004 which Miami blames for causing waves of foreclosures in the housing bust. After issuing high-cost loans to minorities, JPMorgan (JPM -0.3%), says the city, refused to refinance on the same eased terms extended to others.

The lawsuit follows a similar one launched a few weeks ago by Los Angeles.  Wells Fargo, Citi, and BofA face similar charges.

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Comments (9)
  • rambler1
    , contributor
    Comments (996) | Send Message
    What nonsense!
    16 Jun 2014, 01:28 PM Reply Like
  • kbabdb
    , contributor
    Comments (9) | Send Message
    For several years I worked for HSBC in lending... the program that determined rate didn't care what color you cared about your credit score..that determined your rate. Loan to value and debt to ratio based on the payments were what made or did not make the loan.. we didn't care about the borrowers color only the color of the money and if we anticipated getting it back. Many times people with shaky credit would start with us and bail to a lower lender later... they were glad to get the chance to own and repair their credit.
    16 Jun 2014, 01:58 PM Reply Like
  • R140362241
    , contributor
    Comments (7) | Send Message
    The atty's smelling blood again
    16 Jun 2014, 02:01 PM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
    I wish the banks sued by Miami and Los Angeles after they win refuse to issue new loans within each city limits with regards to any type of property for a period of 5 years with review after that based on the political landscape.
    16 Jun 2014, 02:21 PM Reply Like
  • Laura336
    , contributor
    Comments (38) | Send Message
    Another greedy government trying to grab what they can?
    Or is the plan to brand the banks as "bad guys", sue them out of profitability then nationalize them?
    Inverse mergers like MDT's might become more common and not only for tax reasons. I'm considering throwing in the towel with JPM and investing in Ireland.
    16 Jun 2014, 02:30 PM Reply Like
  • Dirty Capitalist
    , contributor
    Comments (184) | Send Message
    Not sure why any bank would pursue mortgage lending in the current environment. Certainly a reason that I think Wells Fargo will become the next target of regulators, state AGs, leading to period of sub-performance. Not that they are doing anything wrong, except making lots of home loans.
    16 Jun 2014, 03:14 PM Reply Like
  • Doc 224899
    , contributor
    Comments (942) | Send Message
    This is about nothing other than lawyers sniffing around for fees.


    LA and Miami have some of the highest concentrations of the intended beneficiaries of the Community Recovery and Reinvestment Act. JPM was out in front when it came to compliance with Bill Clinton's revisions of this legislation, all in a very chummy campaign to get the federal government out of the welfare housing business and dump the expense on the private sector, without directly taxing anyone, by coercing banks into passing out mortgages to people who otherwise would have had no realistic expectation of ever migrating out of the housing projects.


    The only way to avoid approving disproportionately fewer minority mortgage applicants, objective criteria for qualifying applicants had to exclude all meaningful criteria related to income, employment, expenses, debt history, and other predictors of fitness to pay off a mortgage.


    The result was subprime mortgage paper that could be spotted from the other side of a parking lot, in the dark. This trash paper was bundled with better mortgage paper, tanking the US real estate market nationally, leading to a national recession.


    None of this means lawyers representing LA, Miami, or JPM are entitled to fees.


    16 Jun 2014, 03:15 PM Reply Like
  • Buyandhold 2012
    , contributor
    Comments (4776) | Send Message
    This is truly sickening. The government twisted JP Morgan's arm to lend money to borrowers who were not qualified. Now everyone is suing JP Morgan for doing what the government twisted its arm to do.


    The government should be sued, not JP Morgan.
    17 Jun 2014, 09:13 AM Reply Like
  • debsty
    , contributor
    Comments (13) | Send Message
    Your all wrong. JP/Chase needs to show the paperwork and the Washington Mutual loans as well. Many of you I am sure here are bankers , but what you don't know is the fraud that perpetrated many home owners and investors. First they owned the loans and tormented the home owners and than they didn't own the loans and hedge funds show up after second mortgages were written off as satisfied . JP/Chase should be forced to show everything.
    28 Jul 2014, 08:24 AM Reply Like
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