DOJ Files Lawsuit Against Texas Developer for Targeting Hispanic Homebuyers in Alleged Predatory Scheme
The Justice Department has filed a lawsuit against a Texas developer, alleging that it targeted Hispanic buyers by exploiting their language barriers and steering them towards unaffordable seller-financed loans. The borrowers were often left with flood-prone properties, leading to foreclosure, while being charged exorbitant interest rates. The properties that went into foreclosure were then bought back for low prices and resold at higher prices. The lawsuit is part of the Justice Department's Combating Redlining Initiative, and officials are urging affected individuals to come forward with their complaints.