IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT
D.C. Docket No. 1:13-cv-24506-WPD
CITY OF MIAMI, a Florida Municipal Corporation, Plaintiff – Appellant,
BANK OF AMERICA CORPORATION, BANK OF AMERICA, N.A., et al., Defendants – Appellees.
Appeals from the United States District Court for the Southern District of Florida
(September 1, 2015)
Before MARCUS and WILSON, Circuit Judges, and SCHLESINGER,* District Judge. MARCUS, Circuit Judge:
The City of Miami has brought an ambitious fair housing lawsuit against Bank of America,1 alleging that it engaged in a decade-long pattern of discriminatory lending in the residential housing market that caused the City economic harm. The City claims that the bank targeted black and Latino customers in Miami for predatory loans that carried more risk, steeper fees, and higher costs than those offered to identically situated white customers, and created internal incentive structures that encouraged employees to provide these types of loans. The predatory loans, as identified by the City, include: high-cost loans (i.e., those with an interest rate at least three percentage points above a federally established benchmark), subprime loans, interest-only loans, balloon payment loans, loans with prepayment penalties, negative amortization loans, no documentation loans, and adjustable rate mortgages with teaser rates (i.e., a lifetime maximum rate greater than the initial rate plus 6%). Complaint for Violations of the Federal Fair Housing Act at 34, City of Miami v. Bank of America Corp., No. 13-24506-CIV (S.D. Fla. July 9, 2014) (“Complaint”). The City alleged that by steering minorities toward these predatory loans, Bank of America caused minority-owned properties throughout Miami to fall into unnecessary or premature foreclosure, depriving the City of tax revenue and forcing it to spend more on municipal services (such as police, firefighters, trash and debris removal, etc.) to combat the resulting blight. The City asserts one claim arising under the Fair Housing Act (FHA), 42 U.S.C. § 3601 et seq., as well as an attendant unjust enrichment claim under Florida law.