Federal Suit Says Two Berkshire Entities Put Homeowners At Risk

The federal Consumer Financial Protection Bureau said in a lawsuit that a unit of Warren Buffett's Berkshire Hathaway ignored red flags that borrowers couldn't afford the mortgages they were given to buy manufactured homes from another Berkshire company. The CFPB said Vanderbilt Mortgage and Finance's decisions put many families in a position where they struggled to pay their bills. Vanderbilt said the lawsuit is an unfounded “example of politically motivated regulatory overreach.” Vanderbilt is a unit of Berkshire's Clayton Homes. Clayton is the nation's largest builder of manufactured homes. The company said regulators only objected to less than 1% of all the loans they reviewed.