21 Lenders Being Sued for Causing Foreclosure Mess

Hhhmmm, this is an interesting twist on the whole real estate mess.

The city of Cleveland, Ohio, is suing 21 of the nation's top lenders for violating Ohio's public nuisance law. Mayor Frank Jackson, along with his Law Director Robert Triozzi have announced that the city is seeking damages from the lenders for their part in the mortgage meltdown currently plaguing the US.

Jackson and Triozzi allege that underhanded lending practices have wreaked havoc on Cleveland's neighborhoods, creating a public nuisance.

Mayor Jackson claims that it is extremely costly for a city to rebound from the declining tax revenues caused by the fallout of foreclosures and believes that the 21 lenders should be responsible for partial reimbursement to the cities affected by their reckless lending practices.

The 21 defendants named in the suit are as follows:

Ameriquest Mortgage Company
Bank of America Corp.
Bear Stearns Companies
Citigroup, Inc.
Countrywide Financial Corp.
Credit Suisse (USA)
Deutsche Bank Trust Company
Fremont General Corporation
GMAC-RFC
Goldman Sachs Group
Greenwich Capital Markets, Inc.
HSBC Holding, PLC
Indymac Bancorp, Inc.
J.P. Morgan Chase Co.
Lehman Brothers Holdings, Inc.
Merrill Lynch & Co, Inc.
Morgan Stanley
Novastar Financial, Inc.
Option One Mortgage Corporation
Washington Mutual, Inc.
Wells Fargo & Company

This is the second lawsuit of its kind filed in 2008. The City of Baltimore also announced that they are suing Wells Fargo Bank, claiming that the lender harmed Baltimore's African American and minority communities and created high rates of foreclosure with unscrupulous lending practices.

So, the band plays on....
'Til next time, it' all good!
Deb