March 2026 Magazine - Flipbook - Page 13
ATTORNEY’S ANGLE
Under the settlement, defendants have agreed to:
• Invest $48 million in infrastructure improvements, with $18 million specifically invested in
drainage infrastructure to address severe and costly flooding damage to homes, and $30 million
towards other general infrastructure improvements;
• Increase housing affordability by adopting underwriting standards that assess borrowers’ ability
to repay their Colony Ridge lot loans through consideration of borrowers’ income, assets, and
debt;
• Preserve homeownership by developing a policy to meaningfully reduce the number and
frequency of foreclosures and deeds in lieu of foreclosures;
• Protect homeowners by developing a default avoidance plan to help borrowers avoid defaulting
on their Colony Ridge lot loans and to meaningfully reduce the overall default rate;
• Protect borrowers by developing a plan to address harms to borrowers’ credit because of reports
made by Colony Ridge for all borrowers who have defaulted on a Colony Ridge lot loan;
• Address misrepresentations to consumers by ensuring honest and accurate advertisements that
truthfully and accurately describe the properties for sale and applicable loan terms;
• Represent accurately the state of properties by providing pre-sale disclosures that accurately
state whether a property is
