Court Dismisses Miami’s Discrimination Lawsuit Against Bank Of America

Posted by Patrick Barnard on July 09, 2014 No Comments
Categories : Residential Mortgage

A U.S. District Court judge has reportedly dismissed a mortgage discrimination lawsuit brought against Bank of America Corp. by the City of Miami, alleging that the bank intentionally gave minorities loans they could not afford.

As per a Reuters report, U.S. District Judge William Dimitrouleas ruled on Tuesday that the city lacked legal standing to sue for damages under the U.S. Fair Housing Act.

In its suit, the City of Miami claimed Bank of America's actions led to a slew of foreclosures that, in turn, lowered property values and resulted in neighborhood blight. The city sought to recover lost property tax revenue and increased city expenses.

Judge Dimitrouleas, however, ruled that the city's claims were only ‘marginally related’ to the purpose of the Fair Housing Act, and that therefore the plaintiffs didn't have standing to bring the suit.

For more, check out the Reuters report.

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