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DOJ Pushes $68 Million Colony Ridge Deal After Judge Objects

The deal proceeds without court oversight, leaving no direct payments to homeowners.

Overview

  • The Justice Department, which said Friday it will proceed without court approval, leaves the agreement outside any judge’s enforcement.
  • U.S. District Judge Alfred H. Bennett questioned why the settlement offers no money to people who lost land and why it sets aside $20 million for police and immigration work not raised in the suit.
  • Justice Department prosecutor Varda Hussain said the Texas attorney general’s office proposed the law‑enforcement funding and cited residents’ safety concerns.
  • By sidestepping the court, the government gives up judicial supervision of compliance and the ability to sue again on the same claims.
  • Colony Ridge denies wrongdoing and says it has begun stricter lending rules, while former DOJ and housing advocates warn harmed buyers must rely on the parties to police the deal without direct relief.