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Appeals court: LA mortgage discrimination suits against BofA, Wells lack merit

The U.S. 9th Circuit Court of Appeals said the mortgage discrimination lawsuits filed by the City of Los Angeles against Bank of America Corp. and Wells Fargo & Co. lacked merit, Los Angeles Times reported May 30.

The City of Los Angeles sued the banks for allegedly pushing black and Latino borrowers into getting more expensive and riskier loans compared to loans offered to white borrowers, the news outlet reported.

The court determined, however, that the city failed to prove that the banks had policies that discriminated minority borrowers. Bank of America and Wells Fargo have asked the court to toss the complaints, arguing that cities should not be able to file complaints under the Fair Housing Act because they are not the victims of alleged discrimination, the news outlet added.