Knowledge Tree
Colony Ridge
Facts (11)
Sources
Fair Lending Report of the Consumer Financial Protection Bureau federalregister.gov Jul 2, 2024 11 facts
claimThe Department of Justice (DOJ) alleges that Colony Ridge defendants' conduct violated the Fair Housing Act (FHA).
claimOn December 20, 2023, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) filed a complaint against the Texas-based company Colony Ridge.
claimThe joint complaint against Colony Ridge defendants seeks injunctions to prevent future violations of Federal consumer financial laws, redress to consumers, damages, and the imposition of civil money penalties.
claimColony Ridge targets Hispanic borrowers by advertising almost exclusively in Spanish on social media platforms like TikTok, often featuring national flags and regional music from Latin America.
measurementRoughly one in four loans issued by Colony Ridge ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers.
claimThe CFPB and DOJ lawsuit alleges that Colony Ridge sells flood-prone land lacking water, sewer, or electrical infrastructure to families and provides loans that borrowers cannot afford.
claimThe CFPB and DOJ allege that Colony Ridge violated the Equal Credit Opportunity Act (ECOA) by targeting consumers of Hispanic origin with a predatory loan product.
claimThe Consumer Financial Protection Bureau (CFPB) alleges that Colony Ridge defendants violated the Consumer Financial Protection Act (CFPA) by making deceptive representations to consumers.
claimIn 2023, the Consumer Financial Protection Bureau (CFPB) brought two fair lending enforcement actions against Citibank and Colony Ridge.
claimColony Ridge marketed its seller financing loan product as an easy-to-obtain option requiring no credit check and only a small deposit, promising consumers the opportunity for home ownership.
measurementForeclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30 percent of seller-financed lots within three years of the purchase date.