US Bank To Pay $13.5M To Settle Housing Lawsuit

LOS ANGELES (AP) — U.S. Bank has agreed to pay $13.5 million to settle Los Angeles city allegations that it let 170 foreclosed homes fall into decay.

The city attorney’s office announced the lawsuit settlement Thursday.

In the wake of the housing crash, U.S. Bank acquired more than 1,500 foreclosed properties in Los Angeles, many vacant or in low-income areas.

The city alleged that 170 were allowed to fall into disrepair in violation of city codes.

In a statement, U.S. Bank says it was only the trustee for loans that covered most of the homes and wasn’t legally obligated to maintain them. However, the bank says it will work with the loan servicers and the city to make sure the properties are kept up.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


One Comment

  1. No Brainer says:

    A forecloser automatically becomes the new owner after the foreclosure is completed, even if the forecloser used a loan servicer to service the loan. The loan servicer is merely a paid independent contractor of the bank that granted the loan. Therefore, US Bank is fully liable.

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