US Bank reaches $13.5M settlement over foreclosed homes scandal

U.S. Bank agreed to pay $13.5 million in a settlement with the Los Angeles City Attorney over allegations it neglected hundreds of its foreclosed properties, most of which are located in low-income areas of South L.A. and the San Fernando Valley.

Under the terms of the settlement, U.S. Bank would pay $11.9 million in civil penalties for violating the Municipal Code and agree to maintain foreclosed properties for two years, as required by law, the L.A. Business Journal reported. The settlement must still be approved in court.

The lawsuit against U.S. Bank, filed in 2012 by City Attorney Carmen Trutanich, focused on 170 L.A. properties U.S. bank acquired through foreclosure. It said the bank, which is the fifth largest commercial bank in the country, failed to bring to the properties up to compliance standards, despite multiple notices from city agencies.

As part of the settlement, U.S. bank will also designate one full-time senior employee to be the liaison between city agencies and properties that may have code violations [LABJ] — Cathaleen Chen