"Texas Developer Faces Federal Lawsuit for Targeting Hispanic Homebuyers"
Federal authorities have filed a lawsuit against Houston-area developer Colony Ridge, accusing it of targeting Latino homebuyers with seller-financed mortgages and setting them up for foreclosure. The alleged scheme involved misleading advertisements, high-pressure sales tactics, minimal down payments, and loans extended without assessing the buyer's ability to repay. The company also misrepresented facts about essential services, leading to unexpected expenses for borrowers. Roughly one-in-four Colony Ridge loans ends in foreclosure. The government is seeking injunctive relief, compensation for affected consumers, and penalties against the developer for violating federal laws. Colony Ridge denies the allegations and claims to have a positive relationship with customers.