LULAC SUPPORTS FEDERAL ACTION IN MASSIVE REAL ESTATE FRAUD CASE THAT TARGETED LATINOS IN TEXAS
Nation's Oldest and Largest Latino Civil Rights Organization Says Houston-Area Colony Ridge Fiasco is the Tip of the Iceberg of Financial Injustices Hurting Our Communities
December 20, 2023
Contact David Cruz - (818) 689-9991
davidcruz@lulac.org
Washington, DC - The League of United Latin American Citizens (LULAC), the nation's oldest and largest Latino civil rights organization, strongly supports the decisive action taken by the Department of Justice and the Consumer Financial Protection Bureau (CFPB) against Colony Ridge, a Texas-based developer and lender. The lawsuit filed in federal district court exposes Colony Ridge's illegal land sales scheme, which specifically targeted tens of thousands of Hispanic borrowers with false statements and predatory loans.
"LULAC strongly supports the decision by the Department of Justice and the Consumer Financial Protection Bureau on behalf of Latinos who have lost millions of their hard-earned dollars," says Domingo Garcia, LULAC National President. "Even worse, their dreams of homeownership have been ripped away, and they have been left with the nightmare of financial loss and the uncertainty of where they and their families will live," adds Garcia.
The Colony Ridge case is a stark example of financial injustices plaguing our communities, especially among Latinos in Texas. The lawsuit alleges that the company, operating a setup-to-fail scheme, sold flood-prone land to unsuspecting families without essential infrastructure, setting borrowers up for failure with loans they could not afford. Shockingly, approximately 1-in-4 Colony Ridge loans end in foreclosure, leaving families in financial ruin and their dreams of homeownership shattered.
Amid this crisis, Lydia Guzman, LULAC National Immigration Chair, emphasizes the broader impact on immigrant communities, stating, "LULAC continues to call for comprehensive immigration reform to help stop the exploitation of men and women whose labor is contributing to the economy of the United States."
The lawsuit, filed by the CFPB and the Justice Department, sheds light on Colony Ridge's egregious practices. It alleges that the company misled borrowers about essential infrastructure on the lots it sold, often conducting marketing in Spanish while providing crucial transaction documents only in English. These exploitative tactics disproportionately affected Hispanic consumers, perpetuating financial harm within vulnerable communities.
"LULAC will find you and make sure that the appropriate law enforcement agencies prosecute you for your illicit actions," warns Garcia. "We will not rest until those who steal, cheat, and deprive us of our civil rights through unfair business dealings are brought to justice."
The case against Colony Ridge is a critical step in dismantling predatory, deceptive, and unfair lending practices that target minority communities. LULAC calls for swift justice and redress for the affected consumers, highlighting the urgent need to address financial injustices that disproportionately impact Latino communities.
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