FHA suit filed by City of Miami voluntarily dismissed
The City of Miami has voluntarily dismissed its lawsuits against several financial institutions, a case in which CUNA filed an amicus brief. The city of Miami sued Wells Fargo, Citigroup and Bank of America, arguing that foreclosures and other events stemming from unfavorable mortgages resulted in lost revenue from lower property taxes and other incurred expenses.
CUNA’s brief expressed concerns that a decision in favor of the municipality could set a bad precedent that would allow other entities, such as neighboring residents, municipalities and even local businesses, to maintain suits against financial institutions, even if the entity never had any direct dealings with a credit union or bank.
“The massive wave of litigation under the FHA—brought by private lawyers on behalf of municipalities—will impose potentially enormous costs on lenders without significantly advancing the goals of the FHA,” CUNA wrote in its brief.