Key takeaways:
- The Justice Department has filed a lawsuit against Colony Ridge Development, LLC, and its subsidiaries for predatory lending practices targeting Hispanic community members in the Houston area.
- The lawsuit alleges that the developers exploited language barriers and sold land in disrepair.
- The lawsuit seeks to stop the defendants from engaging in any further predatory lending practices, provide restitution to affected borrowers, and seek civil penalties for violations of the Fair Housing Act and the Equal Credit Opportunity Act.
A Texas-based housing developer and mortgage lender is facing a federal lawsuit alleging predatory lending practices targeting members of the Houston area’s Hispanic community.
The Justice Department filed the lawsuit Wednesday against Colony Ridge Development, LLC, and its subsidiaries, accusing them of taking advantage of language barriers by providing key documents and information in English and steering Spanish speakers to seller-financed loans that families could not afford.
The lawsuit alleges that the developers, who handled over 40,000 lots across 33,000 acres, exploited language barriers and sold land in disrepair. It is the first effort by civil rights prosecutors to confront predatory mortgage lending in the U.S.
The lawsuit seeks to stop the defendants from engaging in any further predatory lending practices and to provide restitution to affected borrowers. It also seeks civil penalties for violations of the Fair Housing Act and the Equal Credit Opportunity Act.
Colony Ridge Development, LLC, and its subsidiaries have not yet responded to the lawsuit. The Justice Department is continuing to investigate the matter and is encouraging anyone with information about the alleged predatory lending practices to contact the department.
Be First to Comment