Berkshire Hathaway Unit Sued Over Allegedly Predatory Loan Practices

The CFPB accuses Vanderbilt Mortgage, part of Berkshire's Clayton Homes, of approving unaffordable loans that left borrowers in financial distress.

The Consumer Financial Protection Bureau (CFPB) has filed a federal lawsuit against Vanderbilt Mortgage & Finance, a subsidiary of Berkshire Hathaway's Clayton Homes.
The CFPB alleges that Vanderbilt approved loans for manufactured homes despite clear evidence that borrowers could not afford them, violating the Truth in Lending Act.
Examples cited include loans approved for borrowers with insufficient income or significant debts, leaving families with minimal disposable income after payments.
The lawsuit seeks to halt Vanderbilt's lending practices, provide relief to affected borrowers, and impose civil penalties for the alleged violations.
Manufactured homes, often a key affordable housing option for low-income and rural Americans, are at the center of the case, raising broader concerns about lending practices in the sector.