Twin Cities Considering Legal Action Against Subprime Lenders

In Minnesota, the Minneapolis Star Tribune reports:

• City leaders in Minneapolis and St. Paul are exploring legal action against the subprime lenders who financed the cities' explosion of foreclosed properties. While the Minneapolis Civil Rights Department is weighing action that alleges racially discriminatory lending patterns, the city attorney's office is researching lawsuits that other cities have filed against subprime lenders. St. Paul also is exploring its legal options for dealing with boarded-up housing.

• Cleveland and Baltimore last month sued lenders, setting off what could be a wave of such actions. Baltimore alleged that Wells Fargo made predatory loans in black neighborhoods, which the lender denied.

For more, see Cities consider going after lenders (The rise in foreclosures brings calls for St. Paul and Minneapolis to follow other cities that are suing subprime lenders for damages).