Feb 27 (Reuters) - The U.S. Consumer Financial

Protection Bureau dismissed its lawsuit accusing Vanderbilt

Mortgage and Finance, a unit of Warren Buffett's Berkshire

Hathaway ( BRK/A ), of driving borrowers into loans they could

not afford to buy homes from Berkshire's Clayton Homes unit.

Thursday's voluntary dismissal is part of a broad

retrenchment in enforcement by the CFPB, which was created in

2010 during the Obama administration and which U.S. President

Donald Trump wants to dismantle.

The CFPB on Thursday also dismissed multiple other lawsuits,

including a case against Capital One. Its dismissals

have been with prejudice, meaning the agency cannot pursue the

cases again.

Vanderbilt and Clayton, its parent, had no immediate

comment. Both are based in Maryville, Tennessee, a suburb of

Knoxville.

The CFPB sued Vanderbilt on January 6, accusing it of

violating the federal Truth in Lending Act by ignoring "clear

and obvious red flags" that borrowers could not afford their

loans.

It said many borrowers ended up paying late fees and

penalties, had their homes repossessed or filed for bankruptcy

after falling behind on payments.

Clayton is the largest U.S. builder of manufactured homes,

including mobile homes. These are often bought by people who

have low credit scores and incomes, or live in rural areas.

In 2024, Clayton's revenue rose more than 8% to $12.4

billion. Pretax profit fell 6% to about $1.9 billion, in part

because of higher losses from loans and homeowner property

insurance claims.