City Of San Diego The Latest To Jump On Bandwagon In Targeting Lenders For Loose, Predatory Practices

A story reported last week in the San Diego Union Tribune reminds us that the recent lawsuit filed against Countrywide Financial by City Attorney Michael Aguirre on behalf of the City of San Diego is the latest suit brought by a city where it has decided to hold a mortgage lender accountable for the problems arguably caused by the loose and/or predatory lending standards used in making certain home loans.

• [A]guirre noted that cities such as Baltimore, Buffalo and Cleveland have filed lawsuits related to the foreclosure issue, but have used varying legal theories. In San Diego's suit, Aguirre is arguing that the city has the authority to go after lenders under the California business and professions code governing fraudulent and unlawful business practices.
  In Cleveland, the legal basis was the public nuisance law.

The Buffalo suit is based primarily on violations of the New York State Property Maintenance Code; the Baltimore suit is based on violations of the Federal Fair Housing Act of 1968.

For the lawsuits filed by the above-referenced cities, see:

1. People (City of San Diego) v. Countrywide Financial Corp., et al.,
2. City of Buffalo v. ABN Amro Mortgage Group Inc., et al.,
3. City of Cleveland v. Deutsche Bank Trust Company, et al. (if you have a problem with this link, drop me a line at HomeEquityTheft@yahoo.com and I'll e-mail it to you - be sure and put "City of Cleveland v. Deutsche Bank" in "subject" line),
4. Mayor and City Council of Baltimore v. Wells Fargo Bank, N.A., et al.

See also:

• The National Law Journal: Empty Homes Spur Cities' Suits,
• ABC News: Cities sue home lenders (Communities Take Banks, Lenders to Court for Failing to Fix Up Foreclosed Homes).