Citigroup loses bid to stop L.A. mortgage discrimination lawsuit

http://www.rawstory.com/rs/2014/06/09/citi-loses-bid-to-stop-l-a-mortgage-discrimination-lawsuit/



Citigroup loses bid to stop L.A. mortgage discrimination lawsuit
By Reuters
Monday, June 9, 2014 18:27 EDT

(Reuters) – A lawsuit by the City of Los Angeles accusing Citigroup Inc of mortgage discrimination can go forward, a federal judge ruled on Monday, turning down the bank’s motion to dismiss the case stemming from last decade’s real estate boom.

The lawsuit, filed in December, accuses Citigroup of engaging in a “continuous pattern” of discrimination since at least 2004 by targeting minorities for high-cost mortgage loans, violating the U.S. Fair Housing Act. The city is seeking damages from the bank for the costs of extra services and lost tax revenue in blighted neighborhoods.

Citigroup is one of four banks that Los Angeles has sued since December for allegedly giving minorities home loans they could not afford, resulting in a wave of foreclosures and a lower tax base.

Lawyers for Citigroup had challenged the city’s right to sue, saying it had not offered specific or concrete details of harm.