Skip to Content

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

By LINDSAY WHITEHURST
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.

Article Topic Follows: AP National

Jump to comments ↓

Author Profile Photo

Associated Press

BE PART OF THE CONVERSATION

KIFI Local News 8 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content