Mortgage-related firms are fighting a swarm of actions alleging discriminatory practices. The latest target is JPMorgan Chase &Â Co.
On Thursday, the city of Providence, R.I., announced that it filed a complaint in federal court against Santander Bank, N.A., for alleged redlining.
The city claims that the former Sovereign Bank, which was acquired in 2009 by Madrid, Spain-based Banco Santander SA, violated the Fair Housing Act and the Equal Credit Opportunity Act.
Santander allegedly has been deliberately reducing its lending in minority neighborhoods of Providence while expanding its business in predominantly white neighborhoods, according to the lawsuit.
“Santander’s practices violate fair lending laws and hurt Providence families,” Providence Mayor Angel Taveras said in the statement. “Many borrowers in minority neighborhoods are qualified for prime loans, but Santander has written them off. That holds down property values and the broad economic recovery that a healthy housing market can help generate in every neighborhood in Providence.”
A day later, the city of Los Angeles said it sued Chase over alleged discrimination that, it claims, led to a wave of foreclosures, cut in to property tax revenue and increased expenses for city services.
Los Angeles filed the action just two days after a decision by U.S. District Judge Otis Wright II denying Wells Fargo &Â Co.’s motion to dismiss a separate, similar lawsuit filed by the city.
In addition to Wells Fargo, Los Angeles sued Citigroup Inc. and Bank of America Corp. in December 2013 for alleged discriminatory lending practices since at least 2004.
Los Angeles seeks damages from Chase for lost property taxes and the increased cost of city services resulting from the foreclosures.
“L.A. continues to suffer from the foreclosure crisis — from blight in our neighborhoods to diminished revenue for basic city services,” Los Angeles City Attorney Mike Feuer said in the news release. “We’re fighting to hold those we allege are responsible to account and to help bring back every community in our city.”
The National Fair Housing Alliance has announced separate complaints filed this year with the Department of Housing and Urban Development against Safeguard Properties; U.S. Bank, N.A.; and Deutsche Bank alleging that the firms are not maintaining real-estate-owned assets in black and Hispanic neighborhoods.
