A federal judge rejected a mortgage discrimination lawsuit brought by the city of Los Angeles against Bank of America, according to a ruling obtained Friday.
In a written decision, U.S. District Judge Percy Anderson determined that the municipality could not sue under the U.S. Fair Housing Act because it had not shown it had suffered any damages “as a result of defendants’ allegedly discriminatory loans.”
Los Angeles City Attorney Mike Feuer is “currently reviewing the judge’s decision,” which was handed down Thursday, said his spokesman, Rob Wilcox.
The city alleged in 2013 that Bank of America and its Countrywide Home Loans subsidiary caused a wave of home foreclosures that cost Los Angeles more than $1 billion and depressed local tax revenue as a result of a “continuous pattern and practice of mortgage discrimination.”
“We are pleased that the court dismissed the city’s claims that we have discriminated against African-American and Hispanic borrowers,” a Bank of America statement says. “Our record demonstrates a firm commitment and strong record for fair and responsible lending and community revitalization.”
The city also sued JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. in the case. Those allegations remain pending.
— City News Service
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