The lawsuit claims Vanderbilt Mortgage manipulated lending standards when borrowers didn’t make sufficient income. The company has denied any wrongdoing.
MARYVILLE, Tenn. — An East Tennessee mortgage finance company is being sued by the Consumer Financial Protection Bureau for alleged predatory lending practices, according to court records.
According to the CFPB, Vanderbilt Mortgage & Finance, a subsidiary of Clayton Homes, violated the Truth in Lending Act and Regulation Z by approving loans without properly verifying a borrowers ability to repay. CFPB said borrowers faced additional fees and some lost their homes.
Vanderbilt is a nonbank financing company based in Maryville who originates loans for manufactured homes across the country.
The lawsuit claims Vanderbilt manipulated lending standards when borrowers didn’t make sufficient income. CFPB claims the company originated loans for borrowers who were already struggling. In one case, CFPB claims Vanderbilt approved a loan for a family with 33 debts in collection and two young children. They said they fell behind on the …