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Justice Department sues Texas developer accused of luring Hispanic homebuyers into predatory loans

Associated Press

WASHINGTON (AP) — The Justice Department has filed its first predatory mortgage lending case against a Texas developer accused of luring tens of thousands of Hispanic homebuyers into “bait and switch” sales through platforms like TikTok. The lawsuit filed Wednesday focuses on a large development northeast of Houston. Authorities say it promises homeownership with advertisements in Spanish, but then steers applicants into buying properties without basic utilities by taking out loans they can’t always repay. The suit says the developer uses high-pressure sales tactics that exploit limited English proficiency. The development calls the lawsuit baseless and inflammatory.

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