But it gets worse. How is there standing in this case? Did individual borrowers who were black or Latino sue the banks and demonstrate evidence of discriminatory practices in violation of the FHA? Not a chance. It was the city government of Miami that sued the banks under dubious accusations of discrimination. Where is the injury-in-fact? How is the city a party to a “dispute” over private mortgages?
Are you ready? The argument is essentially as follows: Racist banks offered mortgages to too many black and Hispanic borrows who couldn’t afford them, which led to default, which led to foreclosures, which led to vacant houses, which brought down the values of the adjacent homes, which led to reduced property taxes, which led to more criminal and social problems, which strained the local services (fire, police, inspectors, debris collectors, etc.).
You see, had the evil banks not insidiously lent to black and Hispanic borrowers who couldn’t pay (at the coercion of government), Miami would not have gangs, drugs, poverty, and urban blight. It would be a utopia.
Another abominable, idiotic decision by John Roberts.