Colony Ridge, a residential development near Houston primarily targeting Hispanic buyers, is facing a lawsuit from the Biden administration for alleged predatory lending and deceptive sales practices. Federal prosecutors claim that the company illegally targeted Hispanic buyers with little credit, offered financing without verifying their ability to pay, and charged high interest rates. Colony Ridge denies the accusations, stating that they are baseless and that they have a good relationship with their customers. The development has attracted attention from Texas Republicans, who previously criticized it for attracting undocumented migrants. However, the Biden administration’s lawsuit accuses Colony Ridge of deceptive practices and discrimination, alleging that it initiated foreclosures on a significant portion of properties within three years of sale and misrepresented property features in Spanish marketing materials. The lawsuit also names affiliated companies and a mortgage company involved in financing the properties. Despite the controversy, Colony Ridge plans to continue expanding, though its rapid growth has strained local resources and led to tensions with nearby communities.

https://www.nytimes.com/2023/12/20/us/colony-ridge-texas-builder-prosecution.html