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

On February 10, 2026, the United States entered into a $68 million settlement agreement resolving Consumer Financial Protection Bureau and United States v. Colony Ridge Development, LLC, et al. (S.D. Tex.). The United States’ complaint, which was filed on December 20, 2023, alleges that Colony Ridge Land, LLC and its affiliates (“Colony Ridge”), a land developer and lender near Houston, TX, intentionally targeted Hispanic borrowers with a predatory land sales and lending scheme that led to a cycle of foreclosures and financial hardship in violation of the Equal Credit Opportunity Act (“ECOA”) and the Fair Housing Act (“FHA”).   Specifically, the complaint alleges that Colony Ridge engaged in a predatory bait-and-switch land sales scheme in Liberty County, Texas, roughly 30 miles northeast of Houston. The United States alleges that, despite promising the American Dream of homeownership, Colony Ridge exploited borrowers by employing misleading advertisements and sales tactics, including misrepresentations about flooding risks. Colony Ridge also allegedly used seller-financed loans without verifying a borrower’s ability to repay, significantly increasing the possibility of default and resulting in high foreclosure rates. Under the terms of the settlement, Colony Ridge has agreed to: invest $48 million in infrastructure improvements, with $18 million specifically invested in drainage infrastructure to address flooding and $30 million towards other general infrastructure improvements; adopt underwriting standards that assess borrowers’ ability to repay; develop policies to meaningfully reduce the number and frequency of foreclosures and defaults; ensure honest and accurate advertisements that truthfully and accurately describe the properties for sale and applicable loan terms; and invest $20 million in increased law enforcement presence. The resolution obtained in this matter was the result of a coordinated effort with the States of Texas’s Office of the Attorney General. The settlement resolves the December 2023 lawsuit filed by the Civil Rights Division and the Consumer Financial Protection Bureau and a March 2024 lawsuit filed by the State of Texas Office of the Attorney General. The Civil Rights Division worked jointly with the Consumer Financial Protection Bureau to investigate this matter after receiving a referral from the Bureau.

Press Release - 2/10/2026