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Miami vs BofA a Mixed Bag for Banks

Posted To: MND NewsWire

The Supreme Court ruled on Monday, in Bank of America Corp. v City of Miami , that cities can bring suits alleging discrimination under the Fair Housing Act. The 5-3 decision, with Chief Justice John Roberts joining the majority, was, in the words of Amy Howe, writing in SCOTUSblog , was a “mixed-bag ruling” “which “gives ammunition to both sides in litigation between cities and banks under the Fair Housing Act over the impact of predatory lending practices on local communities.” Miami filed suit against Bank of America and Wells Fargo in 2013, arguing that the banks had violated the Fair Housing Act (FHA) in several ways. They are alleged to have made loans to minority borrowers that included “excessively high interest rates, unjustified fees, falsely promoted teaser rates, large prepayment…(read more)

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Source: Mortgage News Daily

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