Monday, February 9, 2015
Citi, Wells Fargo, JPM defeat mortgage discrimination lawsuits
A federal judge in California has dismissed lawsuits brought by the Los Angeles Unified School District alleging mortgage discrimination by three of the nation's biggest banks, ruling the district has not shown how it was harmed.
In three separate orders on Tuesday, U.S. District Judge Otis Wright rejected the school district's argument that it lost property tax revenue because of discriminatory lending by Citigroup Inc, Wells Fargo & Co and JPMorgan Chase & Co.
Local property taxes do not determine the school district's level of funding because state and local revenue are commingled in a single fund under state control, Wright said, agreeing with the banks' arguments.
Full article only on Westlaw link here right now.
The cases: The school district's cases, all in U.S. District Court in California's Central District, are Los Angeles Unified School District v. Wells Fargo & Co et al, No. 14-cv-7370; Los Angeles School District v. Citigroup Inc et al, No. 14-cv-7368; and Los Angeles Unified School District v. JPMorgan Chase & Co et al, No. 14-7369.
Hat tip to Jonathan Rosenbloom...