Los Angeles files discrimination complaints against Wells Fargo, Citigroup

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Marking the latest housing-related discrimination case against banks, the city of Los Angeles has filed a lawsuit against Citigroup and Wells Fargo for allegedly discriminating against minorities through their mortgage lending practices, Reuters reports.

According to the news outlet, the city is accusing the bank of ”imposing different terms or conditions on a discriminatory and legally prohibited basis” with many mortgages they have originated for minority borrowers since 2004, and seeking damages for a loss in tax revenue that allegedly resulted from those practices.

Banks have shelled out millions in fines for allegedly discriminatory mortgage and foreclosure practices. Earlier this year, Wells Fargo ponied up $42 million to settle a complaint filed by the NFHA alleging that the bank treated foreclosures in predominantly white neighborhoods better than it treated foreclosures in minority neighborhoods.

Source: Reuters

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