"The lawsuit alleged that Colony Ridge funneled borrowers into high-cost loans without meaningful assessments of their ability to repay, contributing to widespread defaults and foreclosures."
"Federal regulators alleged Colony Ridge issued high-interest seller-financed loans without verifying borrowers' income, debts or other financial obligations, while marketing the loans as requiring no credit checks."
"According to the complaint, roughly 91% of nearly 28,500 transactions recorded between 2017 and 2022 involved at least one Hispanic consumer, despite their lower representation in the area."
"The government also alleged Colony Ridge misrepresented whether lots included access to water, sewer and electrical infrastructure, while failing to disclose flooding risks."
Judge Alfred H. Bennett ruled that the proposed settlement between the CFPB, DOJ, and Colony Ridge was insufficient and unrelated to the claims in the lawsuit. The lawsuit accused Colony Ridge of violating the Equal Credit Opportunity Act and Fair Housing Act by targeting Hispanic consumers with predatory lending practices. Allegations included issuing high-interest loans without proper assessments of borrowers' financial situations and misrepresenting property conditions. The case highlighted significant issues of discrimination and financial exploitation in the housing market.
#consumer-financial-protection-bureau #department-of-justice #colony-ridge #predatory-lending #hispanic-consumers
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