L.A. sues JPMorgan over foreclosures

associated press Published:

LOS ANGELES -- Los Angeles is suing JPMorgan Chase for mortgage discrimination that the city says led to a wave of foreclosures that blighted neighborhoods, reduced property taxes and increased the need for costly city services.

The city attorney's suit, filed Friday in federal court, claims the bank gave black and Latino borrowers predatory home loans that they couldn't afford -- leading to foreclosures when the housing bubble burst and they were denied refinancing.

Messages to JPMorgan Chase representatives seeking comment weren't immediately returned.

The city attorney filed similar lawsuits in December against Bank of America, Wells Fargo and Citigroup. They've all denied the allegations.

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