Colony Ridge: Federal Lawsuit Against Developer Targeting Latino Home Buyers

Federal authorities have filed a lawsuit against Houston-area developer Colony Ridge, accusing the company of targeting Latino home buyers with predatory loans and false promises, resulting in many facing foreclosure. The housing development drew attention from state lawmakers following claims by right-wing publications that it attracted undocumented immigrants.

Colony Ridge allegedly engaged in misleading advertising tactics and high-pressure sales strategies to draw in Latino customers, often requiring minimal down payments and extending loans without proper assessment of a buyer’s ability to repay. This led to significant financial hardship for many families, with approximately one in four loans ending in foreclosure, according to federal officials.

The lawsuit alleges that Colony Ridge violated federal laws surrounding fair housing, credit opportunities, and consumer protections. The government is seeking injunctive relief to halt the company’s practices, compensation for affected consumers, and penalties for the violations.

Colony Ridge’s CEO, John Harris, has denied the allegations, calling the lawsuit “baseless and outrageous.” Despite claims from right-wing publications and state officials, Harris maintains that the company provides opportunities for customers to achieve the American dream of homeownership.

The situation has sparked further controversy, with advocacy groups calling for criminal investigations into Colony Ridge and federal officials launching a public awareness campaign in Liberty County. The lawsuit sheds light on the alleged predatory lending practices of the developer, affecting thousands of Latino home buyers.

As the legal battle unfolds, it remains to be seen how Colony Ridge and the federal government will address the issues raised in the lawsuit. Stay updated for more developments on this case.