Texas Lender Colony Ridge Sued By CFPB, DOJ
The Consumer Financial Protection Bureau and the U.S. Department of Justice are suing developer and lender Colony Ridge, alleging it targeted Hispanic borrowers with “bait-and-switch” land sales and predatory loans.
The lawsuit claims Colony Ridge gave borrowers inaccurate information about homesites and coerced them into loans they could not afford, according to the CFPB’s press release.
“Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure,” said CFPB Director Rohit Chopra.
Colony Ridge allegedly sold families flood-prone land without water, sewer, or electrical infrastructure. They are being charged with violating the Interstate Land Sales Full Disclosure Act. …