MIAMI (AP) – JP Morgan made burdensome loans to minorities that led to a far greater rate of foreclosures, the city of Miami claims in a new lawsuit.
The lawsuit filed last week in Miami federal court claims the bank has engaged in prohibited lending practices since at least 2004. The city says loans were disproportionately made in black and Hispanic neighborhoods with burdensome terms, causing many minorities to be pushed into foreclosure.
Miami is seeking unspecified damages and an order prohibiting JP Morgan from continuing to make racially discriminatory loans. Bank spokesman Jason Lobo says the lawsuit has no merit and that JP Morgan has a strong record of providing housing to low- and moderate-income families in South Florida.
The city of Los Angeles recently filed a similar lawsuit.