The city of Los Angeles has filed a federal lawsuit against the US bank JPMorgan Chase, accusing the lender of engaging in biased mortgage lending practices that started a foreclosure wave, knocking down the property values among minority borrowers.

Filed in the US District Court for the Central District of California, the lawsuit accused the bank of practicing mortgage discrimination in Los Angeles, since at least 2004.

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Citing the complaint, the Wall Street Journal reported that the bank used discriminatory practices "by imposing different terms or conditions on a discriminatory and legally prohibited basis."

As per statements obtained confidentially from JPMorgan employees, Los Angeles said the bank’s loans from 2004 to 2011 in predominantly black or Latino neighborhoods were 2.19 times more likely to go into foreclosure than loans in mainly white areas. It said loans to minority borrowers went into foreclosure faster.

In a statement, Los Angeles Attorney Mike Feuer said "LA continues to suffer from the foreclosure crisis – from blight in our neighborhoods to diminished revenue for basic city services."

"We’re fighting to hold those we allege are responsible to account," Feuer added.

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Los Angeles, which has earlier sued Bank of America, Citigroup and Wells Fargo & Co, seeks to hold JPMorgan liable for loss in property tax revenue caused by decreasing home values, and the cost to maintain vacant foreclosed properties.

Commenting on the lawsuit, JPMorgan spokesman Jason Lobo said in a statement, "We are disappointed the L.A. City Attorney is pursuing an adversarial approach to address city finances impacted by the recent economic downturn."

"The downturn was beyond our control," Lobo explained adding that the bank will defend itself against the lawsuit.