Boston, MA 06/18/2014 (wallstreetpr) – Miami is the latest city to start a Lawsuit against JPMorgan Chase & Co. (NYSE:JPM) over its alleged discriminatory lending practices, following in the footsteps of Los Angeles that has also initiated the same proceedings. Miami city on its part is seeking unspecified damages, as a result, of unfair of mortgage practices.
JPMorgan Discriminatory Practices
Miami Lawsuit’s indicts JPMorgan Chase & Co. (NYSE:JPM) of issuing approximately 2,400 discriminatory loans most of which ended in foreclosure between 2004 and 2012. JPMorgan has in the past been accused’ of refusing to offer mortgages to the minority communities on terms similar to others. It is further being alleged that the bank issued loans to the minority on terms that were beyond their means to payback.
Miami in its lawsuit is seeking damages for reduced property taxes as well as higher expenses incurred for municipal services related with the foreclosures according to its June 13 lawsuit. It is alleged, that the rate of foreclosures is 4.6 times higher in minority neighborhoods in Miami city compared to the white neighborhoods. Lawyers of the state of Miami claim that the bank offered discriminatory loans with a view of maximizing profits at the expense of the city as well as minority borrowers.
Foreclosure Proceedings
With a population of about 100,000, Miami Gardens has also filed a lawsuit with the Federal Court on similar allegations against Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C) and Wells Fargo & Co (NYSE:WFC). For JPMorgan Chase & Co. (NYSE:JPM), this is another major hurdle to the ever unending legal hassles that it has been grappling with, ever since the financial crisis. The bank has continued to face several cases and probes regarding the way it carried out its operations during the economic crisis.
Increased legal tussles are expected to drag its financials lower as more fines and settlements loom. The bank has already refuted the Miami claims, claiming they are baseless and stand contrary toits long record of providing affordable housing to moderate income families.
