The Consumer Financial Protection Bureau (CFPB) voluntarily dismissed a lawsuit it filed against Vanderbilt Mortgage & Finance, Inc., a subsidy of Berkshire Hathaway, in December, accusing the company of predatory lending practices that set families up for financial failure.
The CFPB alleged the nonbank financing company ignored evidence indicating many borrowers could not afford the loans approved for the purchase of manufactured homes. The bureau claimed Vanderbilt violated the Truth in Lending Act (TILA) and Regulation Z, in a complaint filed in the District Court for the Eastern District of Tennessee.
According to the notice of dismissal the CFPB filed with the court, the bureau dismissed the complaint with prejudice, meaning the case is permanently dismissed and cannot be refiled.
Dodd Frank Update will update this story as more information becomes available.