On September 13, 2024, the United States District Court for the
Southern District of Texas granted in part and denied in part the
defendants' motion to dismiss in CFPB
v. Colony Ridge, Case No. 4:23-cv-04729. The Court held
that the Consumer Financial Protection Bureau (CFPB) and the U.S.
Department of Justice (DOJ) plausibly stated a claim for reverse
redlining against three of the four defendants pursuant to the
Equal Credit Opportunity Act (ECOA), 15 U.S.C. §1691(a)(1),
the Fair Housing Act (FHA), 42 U.S.C. §3605, and the Consumer
Financial Protection Act (CFPA), 12 U.S.C. §§5531,
5536.
On December 20, 2023, the CFPB and DOJ had filed a
Complaint against a land developer and two of its affiliates
(the "developer"), and a mortgage processing company for
violations of the FHA, ECOA, and the CFPA based on allegations that
the defendants engaged in reverse redlining by targeting limited
English proficiency (LEP) Hispanic mortgage loan applicants on the
basis of
