Los Angeles has sued US Bancorp, accusing a unit of the
fifth-largest U.S. commercial bank of becoming one of its biggest slumlords and
blighting the city by allowing hundreds of foreclosed homes to fall into disrepair,
according to a HuffPo report.
Monday's civil lawsuit by the office of Los Angeles City
Attorney Carmen Trutanich alleges that US Bank NA has taken title to more than
1,500 foreclosed residential properties in the city in its role as trustee for
various mortgage-backed securities trusts.
Los Angeles said that at least since July 2008, US Bank has
"disregarded virtually every one of its legal duties and responsibilities
as owner, resulting in the creation and maintenance of an alarming number of
vacant nuisance properties and substandard occupied housing units."
It said the bank has ignored repeated demands that it comply
with the law, causing hundreds of homes to become uninhabitable or "public
nuisances," and resulting in illegal evictions of hundreds of tenants from
the second most-populous U.S. city.
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