HOUSTON — Federal authorities and the Houston-area developer Colony Ridge have agreed to settle a lawsuit in which the government accused the company of duping Latino homebuyers into seller-financed mortgages that many defaulted on in a scheme that decimated dreams of home ownership while the developers raked in money, according to a court filing.
In an update requested by the judge overseeing the case, lawyers for the U.S. Consumer Financial Protection Bureau and Department of Justice wrote they had “reached an agreement in principle resolving all claims” but needed more time to finalize the settlement.
