Vanderbilt Mortgage & Finance, Inc.
On January 6, 2025, the Bureau filed a lawsuit against Vanderbilt Mortgage & Finance, Inc. Vanderbilt is a non-bank manufactured-home-financing company based in Maryville, Tennessee; it is a unit of Clayton Homes, Inc., the largest manufactured home builder in the U.S. and a wholly owned subsidiary of Berkshire Hathaway. Manufactured homes, commonly known as mobile homes, are an important source of affordable housing for millions of financially vulnerable, low-income Americans, many of whom are located in rural areas. The Bureau alleges that beginning in 2014, Vanderbilt violated the Truth in Lending Act and its implementing regulation, Regulation Z, by originating loans without making a reasonable, good faith determination of the consumer’s ability to repay the loan. As a result, many of these consumers experienced late fees and penalties when their loans became delinquent and had their homes repossessed when their delinquent loans went into default. The Bureau seeks, among other things, to bring defendants into compliance, consumer redress, and the imposition of civil money penalties.
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PRESS RELEASE
CFPB Sues Vanderbilt for Setting Borrowers Up to Fail in Manufactured Home Loans