MIAMI SUES THREE MAJOR BANKS FOR WHAT IT CALLS PREDATORY LENDING IN POOR NEIGHBORHOODS

The City of Miami has sued three major banks for what is says has been a pattern and practice of predatory lending that has hurt the city’s coffers because of foreclosures and a drop in property tax revenues.

According to the lawsuits filed in federal court last week, Bank of America, CitiGroup, and Wells Fargo violated the Federal Fair Housing Act by issuing loans to minority residents in Miami under terms and conditions that were different than those for white borrowers on a routine basis since at least 2004.

“The goal here is to punish the banks for their practices and to recover for the city and its citizens a portion of as much of the damages as is possible to recover,” said city Commissioner Francis Suarez, who sponsored an ordinance earlier this year to pursue legal remedies against the banks.