Miami sues major banks over predatory lending

The City of Miami believes three of the biggest banks in the world violated the Federal Fair Housing Act.

A federal lawsuit has been filed by the city against Bank of America, Citigroup and Wells Fargo over alleged predatory lending, the Miami Herald reported. The city claims it has lost substantial property tax revenue from foreclosures filed by the banks. The lawsuit accuses each bank of regularly giving loans to minority borrowers in the city under different terms than white borrowers over the last decade.

The city is being represented by the group of attorneys who sued the same banks on behalf of the City of Los Angeles earlier this month. The banks all issued statements denying any predatory lending. [Miami Herald] — Eric Kalis