Florida has attracted some dubious attention for its high foreclosure rates in recent years, and now the issue may be headed to court in Miami. The city of Miami has sued JPMorgan Chase, accusing the U.S.’s largest bank of predatory mortgage lending targeted at minority neighborhoods. The suit alleges that these lending practices have led to a continuing wave of housing foreclosures since the nation’s 2008 housing crisis.
This suit comes on the heels of a similar case in Los Angeles—filed just weeks ago. Los Angeles is seeking to recover damages for lost tax revenue and increased city services needed in decaying neighborhoods hit hard by the housing crisis.
The Miami complaint alleges that JPMorgan specifically targeted minorities with high-cost loans in the years leading up to the housing crisis, beginning in at least 2004. Miami has led all major American cities in foreclosures in the past several years, and the lawsuit alleges that loans in predominantly minority Miami neighborhoods were 4.6 times as likely to lead to foreclosure as loans in majority white Miami neighborhoods.
JPMorgan has been quick to defend itself against the alleged discrimination. “The Miami City Attorney’s claims are baseless and stand contrary to our long record of providing affordable housing to low- to moderate-income families across the region,” said JPMorgan spokesman Jason Lobo. Lobo confirmed that JPMorgan Chase will defend itself against the claims.
The wave of racial discrimination suits against banks could become in ugly chapter in an already troubling housing climate. Between the heavily affected, ethnically diverse cities of Los Angeles and Miami alone, Wells Fargo & Co, Citigroup Inc, JPMorgan Chase, and Bank of America Corp are all facing lawsuits by one or both of the cities alleging predatory lending practices targeting racial minorities.
Though punishments could be coming for the nation’s largest banks, the truth is that, in the real estate business, lending and foreclosure aren’t always fair. That’s why everyone facing the prospect of a foreclosure owes it to themselves to have a highly qualified and experienced foreclosure attorney at their side, every step of the way. Don’t delay; in the state of Florida, you only have twenty days to respond to a foreclosure complaint from the owner of your note and mortgage. Make the right move to fight foreclosure—strike back with an experienced Miami or Fort Lauderdale trial lawyer to fight for your rights!
