U.S. Bank to pay L.A. $13.5-million over foreclosed homes that fell into disrepair

The Los Angeles city attorney has reached a $13.5-million settlement with U.S. Bank to resolve allegations that the nation’s fifth-largest bank operated as a slumlord and allowed hundreds of foreclosed properties to deteriorate, fostering crime and blight in L.A. neighborhoods slammed by the housing crisis.

The settlement, announced Thursday, requires the Minneapolis-based firm to maintain its foreclosed properties in “accordance with all applicable laws and standards for two years.” A full-time bank employee will work with city agencies to resolve code violations of foreclosed properties across Los Angeles, the city attorney’s office said.

 “Banks must be accountable for the condition of the properties they hold,” City AttyMike Feuer said in a statement. “This significant settlement underscores my commitment that all foreclosed and vacant properties be kept up to code, so they don’t become sources of blight or magnets for crime.”

U.S. Bank spokesman Dana E. Ripley said the bank would be working with the city as well as loan servicers to ensure foreclosed properties are maintained.

Read on.

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One response to “U.S. Bank to pay L.A. $13.5-million over foreclosed homes that fell into disrepair

  1. Reblogged this on Deadly Clear and commented:
    Wasn’t it Al Capone they took down on his IRS violations? Pick ’em a part bit by bit… Yup!

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