Colony Ridge Development LLC Accused of Predatory Mortgage Lending

Justice Department and Consumer Financial Protection Bureau allege the Texas developer targeted Hispanic immigrants with misleading advertising and unaffordable loans.

Colony Ridge Development LLC, a Texas developer, is being sued by the Justice Department and the Consumer Financial Protection Bureau for allegedly running a predatory mortgage lending scheme targeting Hispanic immigrants.
The lawsuit alleges that Colony Ridge used misleading advertising on social media platforms like TikTok to lure Spanish-speaking customers, promising that its lots came with water, power and sewer services, even though many lacked the necessary infrastructure.
Colony Ridge is also accused of failing to assess customers' ability to repay the loans they use to finance land purchases, and not requesting proof of borrowers' income.
The company allegedly relied on frequent foreclosures to flip properties to new buyers, often at higher prices. Colony Ridge initiated foreclosures on at least 30% of its seller-financed lots within three years.
Colony Ridge CEO John Harris denies the allegations, stating that the company loans to those who have no opportunity to get a loan from anyone else and that they are proud of the relationship they have developed with customers.