- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2025-01-06T18:41:00
A Berkshire Hathaway unit that is a major lender to people buying mobile homes intentionally failed to qualify borrowers, the Consumer Financial Protection Bureau (CFPB) alleged in a complaint. As a result, many families ultimately lost their homes and sank into debt, echoing a series of events that helped power the financial and housing crisis more than 15 years ago.
Vanderbilt Mortgage & Finance, a unit of Clayton Homes, the largest mobile home manufacturer in the nation and a wholly-owned subsidiary of Berkshire Hathaway, didn’t comply with the Federal Truth in Lending Act (FTLA), by failing to reject families whose income profiles made it impossible for them to handle a mortgage, the CFPB said in a complaint filed Monday in U.S. District Court for the Eastern District of Tennessee (No. 3:25-cv-00004).
Mobile, or manufactured, homes are marketed and bought largely by families with low incomes, and they are especially vulnerable to additional debt, the CFPB alleged. The CFPB found that mobile home loans tend to have higher interest rates compared to loans for conventional homes.
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