A Chicago judge has ruled that HSBC must face a lawsuit accusing the bank of violating the US Fair Housing Act by engaging in predatory mortgage lending in Chicago , after rejecting the company's appeal to dismiss the 2007 lawsuit. (Credit: AP) US accuses FHA of using sophisticated algorithms and software to steer thousands of black and Hispanic borrowers into subprime loans they often could not afford, which resulted in a "downward spiral" of delinquencies and foreclosures, eroded property taxes and necessitated greater spending to ease urban blight. HSBC has declined to comment.
A Chicago judge has ruled that HSBC must face a lawsuit accusing the bank of violating the US Fair Housing Act by engaging in predatory mortgage lending in Chicago , after rejecting the company's appeal to dismiss the 2007 lawsuit. US accuses FHA of using sophisticated algorithms and software to steer thousands of black and Hispanic borrowers into subprime loans they often could not afford, which resulted in a "downward spiral" of delinquencies and foreclosures, eroded property taxes and necessitated greater spending to ease urban blight. HSBC has declined to comment.