Last Thursday, the Providence City Council unanimously passed a resolution sponsored by Councilman John J. Lombardi calling on the Law Department to explore the possibility of suing certain mortgage lenders for their roles in creating the current foreclosure crisis.

“Many banks were deceptive, discriminatory, and predatory in their lending practices, dreaming only of their profits and ignoring the real problems they were creating for people all over the country,” said Lombardi.  “Everyday, each of us sees the personal toll the bursting of the housing bubble has taken on our friends and our neighbors. These banks should have to pay for their part in creating these tragedies.”

The resolution pointed to the numerous extra burdens, including police, fire, and inspections costs, the City has had to pay as a result of the large number of foreclosures, as well as the negative effect it will have on the property tax revenues. Lombardi explained, “These increased expenditures and reduced revenues may be enough to legally constitute the City of Providence as a party unjustly injured by the actions of banks and mortgage lenders.” He also pointed to the handful of other cities including, Baltimore, MD, Cleveland, OH, and Birmingham, AL that have taken similar legal action against mortgage lenders in their areas.

“I think we owe it to our constituents, the taxpayers of the city, to look into this option which could bring much needed property tax relief,” said Lombardi.