Legal News

US Bancorp Sued by City of Los Angeles
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

US Bancorp has been sued by Los Angeles in a lawsuit that claims the fifth-largest U.S. commercial bank is one of the city’s largest slumlords. The lawsuit also claims that the company has damaged the city’s appearance by allowing hundreds of foreclosed homes to fall into disrepair. The lawsuit was filed on Monday by Los Angeles City Attorney Carmen Trutanich. It claims that US Bank NA has acquired the title of over 1,500 foreclosed residential properties in the city as part of its role of trustee for multiple mortgage-backed securities trusts.

The city of Los Angeles said that since July of 2008, US Bank has “disregarded virtually every one of its legal duties and responsibilities as owner, resulting in the creation and maintenance of an alarming number of vacant nuisance properties and substandard occupied housing units.” The lawsuit also said that US Bank has ignored multiple demands that it follow the law, resulting in hundreds of homes to fall into uninhabitable condition or become ‘public nuisances.’ This in turn has resulted in hundreds of illegal evictions of tenants.

  
What
Where


The city is asking for a civil fine of $2,500 per day for each violation by “one of the largest slumlords in the city.” The city also provided an estimate for potential liability in the “hundreds of millions of dollars.” A spokesman for US Bancorp, Thomas Joyce, said that the mortgage servicers are responsible for maintaining foreclosed properties and the trustee. Joyce also said that ‘we intent to bring them into the lawsuit.’ US Bancorp is based in Minnesota. Joyce said that the city just recently began detailing which homes need better upkeep and the bank will address foreclosure concerns in Los Angeles like it had done in other cities.

Los Angeles is not the only large city in the United States to sue regarding mortgage industry practices that reportedly have contributed to urban blight. The country’s largest mortgage lender, Wells Fargo & Co, settled a lawsuit in May with Memphis, Tennessee. The company settled another lawsuit on July 12 in Baltimore. The agreement with Baltimore was reached in connection with the company’s $175 million settlement with the federal government in regards to allegations that it overcharged Hispanic and black borrowers on mortgages. In February, there was a $25 billion settlement regarding foreclosure abuses and Wells Fargo was part of the settlement.

In April, the National Fair Housing Alliance filed discrimination complaints with the federal government against Wells Fargo and US Bancorp. The two banks were accused of maintaining foreclosed homes in white neighborhoods better than in minority neighborhoods. Los Angeles had 1.41 million housing units as of the 2010 census, with 95,000 of them vacant.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Executive Director, MDC Foundation

USA-FL-Miami

All applications must be submitted online at http://www.mdc.edu/jobs/ Job Opening ID: 1001435  ...

Apply now

Legal Assistant

USA-WV-Huntington

Qualifications High school or equivalent (Preferred) Microsoft Office: 1...

Apply now

Experienced Municipal/Land Use Attorney

USA-NY-White Plains

Mid-sized White Plains law firm seeks attorney with minimum 4-7 years’ experience in municipal...

Apply now

Staff Attorney - Eviction Prevention Unit | Multiple locations in WA

USA-WA-Wenatchee

Northwest Justice Project (NJP) is a not-for-profit statewide law firm that pursues its mission of C...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Commercial Litigation Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search Top Ranked Law Firm seeks commercial litigation attorney...

Apply Now

SEC Attorney

USA-MA-Waltham

Waltham office of our client seeks SEC attorney with 3-5 years of experience to assist with all aspe...

Apply Now

Mid to Senior-level Real Estate Associate Attorney

USA-FL-Miami

Miami office of a BCG Attorney Search Top Ranked Law Firm seeks mid to senior-level real estate asso...

Apply Now

SEARCH IN ARCHIVE

To Top