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From Banking and Finance Law Daily, January 14, 2016

Leading Democrats urge investigation into discriminatory lending claims at Warren Buffet’s companies

By Stephanie K. Mann, J.D.

Ranking Member Maxine Waters (D-Calif) and Reps. Keith Ellison (D-Minn), Emanuel Cleaver (D-Mo), and Michael Capuano (D-Mass) are calling for a joint Justice Department and Consumer Financial Protection Bureau investigation in response to the Seattle Times and Buzzfeed News investigative series concerning allegations of discriminatory lending and collection practices by Warren Buffett-led Berkshire Hathaway subsidiaries Clayton Homes, Vanderbilt Mortgage, and 21st Mortgage.

Recent reports assert that Clayton Homes and its subsidiaries discriminate against low and moderate-income minority borrowers and misled them into high-cost loans that leave borrowers unable to pay exorbitant monthly loan payments. In the letter requesting the investigation, Waters and other senior House Democrats asked the agencies to use their investigative and enforcement authority under the Dodd-Frank Act, Equal Credit Opportunity Act, and Fair Housing Act to determine whether Clayton and its subsidiaries are violating federal law by engaging in unfair business practices that target minority communities.

Waters emphasized that there is no place for these “kinds of sleazy and deceptive practices.” She added that “the CFPB was established to protect consumers from the kind of misconduct alleged in the investigative series and to hold bad actors accountable for dishonest, predatory practices. These disturbing allegations must be addressed immediately by the CFPB and the Department of Justice.”

Companies: 21st Mortgage; Clayton Homes; Vanderbilt Mortgage

MainStory: TopStory CFPB DebtCollection Loans Mortgages OversightInvestigations

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