financetom
Business
financetom
/
Business
/
US CFPB dismisses lawsuit against Berkshire unit over risky home loans
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US CFPB dismisses lawsuit against Berkshire unit over risky home loans
Feb 27, 2025 10:12 AM

(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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Nukkleus Shares Rise as Acquisition Target Rimon Poised to Benefit From Israel's Iron Dome Expansion
Nukkleus Shares Rise as Acquisition Target Rimon Poised to Benefit From Israel's Iron Dome Expansion
Nov 25, 2025
02:26 PM EST, 11/25/2025 (MT Newswires) -- Nukkleus ( NUKK ) shares rose 15% in recent Tuesday trading after the company highlighted that its pending acquisition target, Rimon, stands to benefit substantially from Israel's multibillion-dollar Iron Dome expansion. Last week, Israel's Defense Ministry signed a procurement agreement with Rafael Advanced Defense Systems to accelerate production of Iron Dome interceptors and...
Ink Films Acquires Sundance Prizewinner DJ Ahmet for U.S. Theatrical Release
Ink Films Acquires Sundance Prizewinner DJ Ahmet for U.S. Theatrical Release
Nov 25, 2025
Las Vegas–based distributor to debut Georgi M. Unkovski's celebrated feature in early 2026 LAS VEGAS, Nov. 25, 2025 /PRNewswire/ -- Ink Films, the theatrical distribution arm of The Beverly Theater, has acquired U.S. distribution rights from Films Boutique to DJ Ahmet, the acclaimed debut feature from Macedonian filmmaker Georgi M. Unkovski. The film, which earned both the World Cinema Dramatic...
Robinhood CEO's math-focused AI startup Harmonic valued at $1.45 billion in latest fundraising
Robinhood CEO's math-focused AI startup Harmonic valued at $1.45 billion in latest fundraising
Nov 25, 2025
(Reuters) -Harmonic, an artificial intelligence startup co-founded by Robinhood CEO Vlad Tenev, has raised $120 million in new funding, valuing the company at $1.45 billion, as it tackles AI hallucinations - or incorrect or nonsensical answers - by improving the ability to reason. The Series C round for the pre-revenue startup was led by Ribbit Capital, with participation from existing...
Lowe's to pay $12.5 million penalty for lead paint violations 
Lowe's to pay $12.5 million penalty for lead paint violations 
Nov 25, 2025
Nov 25 (Reuters) - Lowe's will pay a $12.5 million penalty to resolve U.S. government accusations of lead paint violations during home renovations, the Department of Justice and the Environmental Protection Agency announced on Tuesday. The alleged violations stemmed from renovations performed by Lowe's contractors at hundreds of homes around the country between 2019 and 2021. Lowe's will also improve...
Copyright 2023-2026 - www.financetom.com All Rights Reserved