Los Angeles--Continuing to tackle the impact of the foreclosure crisis on Los Angeles, City Attorney Mike Feuer today sued another of the nation's largest banks, JP Morgan Chase. The suit alleges the bank engaged in discriminatory lending, which the City contends led to a wave of foreclosures that continues to diminish the City's property tax revenues and increase the need for costly City services.
The new litigation against JP Morgan Chase comes on the heels of a federal court ruling on Wednesday that denied a motion by Wells Fargo to dismiss a similar complaint by the City. Feuer sued Wells Fargo, Bank of America and Citigroup in December.
"L.A. continues to suffer from the foreclosure crisis--from blight in our neighborhoods to diminished revenue for basic City services," said Feuer. "We're fighting to hold those we allege are responsible to account and to help bring back every community in our City."
The City seeks damages for reduced property tax revenues resulting from the decreased value of foreclosed properties--foreclosures the City claims were caused by allegedly discriminatory mortgage lending. The suit also seeks damages for the increased cost of City services resulting from the foreclosures.
As a member of the California State Assembly Feuer was an author of the Homeowners' Bill of Rights, along with other legislation to protect homeowners grappling with foreclosure.