|
According to federal officials, Colony Ridge, a real estate
developer located in Liberty County, Texas, about 30 miles (48
km) northeast of Houston, sold unaffordable loans so
unsuspecting families could purchase flood-prone land that had
no connections to sewage lines or other utilities. After
foreclosure, the company allegedly resold plots to new buyers.
"Colony Ridge promised the American dream, but we allege that in
reality, it has delivered a nightmare for thousands of
hardworking Hispanic families who hoped to build their homes in
the Terrenos Houston community," Kristen Clarke, assistant
attorney general for civil rights in the Department of Justice,
said in a statement.
The case was brought jointly by the Justice Department and the
U.S. Consumer Financial Protection Bureau.
Colony Ridge said in a statement that the lawsuit was
"baseless."
It is the first-ever predatory mortgage lending case brought by
the Justice Department under the Fair Housing Act and Equal
Credit Opportunity Act, Clarke told reporters in Washington.
The Consumer Financial Protection Bureau said it was the
agency's first federal lawsuit charging violations of the
Interstate Land Sales Full Disclosure Act.
Colony Ridge CEO John Harris in a statement said the company
looked forward to defending itself.
"The lawsuit is baseless and both outrageous and inflammatory.
Our business thrives off customer referrals because landowners
are happy and able to experience the American Dream of owning
property," Harris said.
(Reporting by Douglas Gillison; Editing by Aurora Ellis and
Leslie Adler)
[© 2023 Thomson Reuters. All rights
reserved.]
Copyright 2022 Reuters. All rights reserved. This material may
not be published, broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
