Monday, May 01, 2017

Supreme Court clears the way for cities, including L.A., to sue banks over foreclosure crisis

The L.A. Times reports:
The Supreme Court expanded the reach of federal housing law Monday, ruling that cities — including Los Angeles — can sue major banks for discriminatory lending practices that hurt low-income neighborhoods during the Great Recession.

The decision gives city leaders a potentially powerful weapon against lenders, including those who were accused of predatory practices that triggered the foreclosure crisis after 2008.
The outcome of this might be less loans in minority communities: why take the risk of loaning money there?