Consumer Financial Protection Bureau and United States v. Colony Ridge Development, LLC (S.D. Tex.)

On September 13, 2024, a S.D. Tex. District Court issued an order finding reverse redlining cognizable under the Fair Housing Act (FHA) §3605 and §3604(b) and the Equal Credit Opportunity Act (ECOA) and permitting the United States’ and Consumer Financial Protection Bureau’s claims against Colony Ridge LLC and its affiliated companies to move forward. This follows the United States’ and Consumer Financial Protection Bureau’s jointly filed complaint on December 20, 2023, which alleges that the Colony Ridge LLC defendants violated the FHA and ECOA, as well as other consumer protection statutes, by operating an illegal land sales scheme targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.