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Wells Fargo must face L.A. discriminatory lending claims
http://www.latimes.com/business/la-fi-wells-fargo-lawsuit-20140528-story.html#navtype=outfitWells Fargo must face L.A. discriminatory lending claims
By Bloomberg News
May 28,2014
Wells Fargo & Co. lost a bid to dismiss a lawsuit by the city of Los Angeles accusing the bank of targeting minority borrowers with "predatory" mortgages that caused a disproportionate number of foreclosures.
U.S. District Judge Otis Wright II in Los Angeles said the city's allegations were legally sufficient to proceed with the case.
The city sued Wells Fargo, Citigroup Inc. and Bank of America Corp. last year, saying the three mortgage lenders engaged in discriminatory practices since at least 2004, placing minority borrowers in loans they couldn't afford and driving up the number of foreclosures in their neighborhoods.
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The city seeks to hold the banks liable for lost tax revenue and increased municipal services stemming from the foreclosures. The ruling Wednesday only relates to the lawsuit against Wells Fargo, the largest home lender in the U.S.