Officials mull suit against home lenders

MEMPHIS, Dec. 14 (UPI) -- County officials in Tennessee are considering suing national lenders they say contributed to the home foreclosure crisis.

The (Memphis) Commercial Appeal reported Sunday that Memphis and Shelby County officials want to pursue companies that engaged in "deceptive" and "discriminatory" lending practices targeted at the black community.

Their practices caused irreparable damage to neighborhoods and drained government coffers, they say.

The newspaper reported the goal of the proposed litigation would be to halt home foreclosures and to seek financial relief. Some officials said the lawsuit could seek $100 million or more to cover damages brought to taxpayers by unlawful lending practices.

"Every government has an obligation to protect those who are least able to fend for themselves," said Shelby County Mayor A.C. Wharton. "This is certainly one of those situations where individuals in these distressed situations are standing alone and simply cannot fight back."

If the county officials file a lawsuit, their action would be similar to litigation filed in Baltimore, Cleveland, San Diego and other cities.