The Supreme Court handed down it's decision on May 1, 2017 and it has implications that will rock the home lending industry. Even though the court has not ruled that the city is an aggrieved party, it has granted the city of Miami to sue on behalf it's citizens if they have been harmed by predatory lending. After several court cases, this one finally landed in the Supreme court. Giving local governments the standing to sue lenders on behalf of their citizens will be a legal nightmare for lenders according to Wells Fargo and Bank of America, who were defendants in the suit. 

This case was the result of the City of Miami accusing the banks of charging higher fees and rates to minority borrowers. The were accused of violating the Fair Housing Act which prohibits lenders for discriminating against applicants based on their race. The Supreme court ruled that the City of Miami was harmed by a reduced tax base and increased costs. The lender allege that the increased legal exposure will result in higher costs for all borrowers.