Wells Fargo & Co, Citigroup Inc and Bank of America Corp also face lawsuits by Los Angeles and Miami for allegedly giving minorities home loans they could not afford, resulting in massive defaults.
The banks have contested the claims, saying they have records as responsible lenders.
Among major cities, Miami has led the country in foreclosures, and JPMorgan’s practices contributed to its problems, Friday’s lawsuit alleged.
Loans in predominantly minority neighborhoods in Miami were about 4.6 times more likely to result in foreclosure than loans in neighborhoods with a majority of white residents, the lawsuit said.
Miami is still being damaged because of the services needed to combat unsafe and dangerous conditions, crime and even gang activity at foreclosed properties, the lawsuit said. Read more.