Los Angeles city officials accuse the Minneapolis-based lending firm of letting hundreds of foreclosed homes to deteriorate and fall into disrepair, the L.A. Times reports. The complaint also claims U.S. Bank is responsible for illegally evicting some tenants and forcing others to live in dangerous conditions. The 18-month investigation is part of the city's attempt to deal with urban decay following the housing crash.
A spokesman for Minneapolis-based U.S. Bancorp told Reuters it is the mortgage servicers, not the trustee, who have the responsibility to maintain foreclosed properties.
In the first quarter of 2012, U.S. Bancorp beat Bank of America and Citigroup to become the third-largest mortgage originator in the United States, Forbes reports.