CFPB drops lawsuit against Vanderbilt Mortgage, limiting protections

The Consumer Financial Protection Bureau (CFPB) has dropped its lawsuit against Vanderbilt Mortgage, a lender owned by Warren Buffett. The lawsuit accused the company of approving loans for borrowers who could not afford them, including a disabled veteran and a family with multiple debts. The CFPB's decision comes after leadership changes under the Trump administration. The agency, which was created to protect consumers after the 2008 financial crisis, has faced significant cuts and staff reductions, limiting its oversight capabilities. Vanderbilt Mortgage maintains that it complies with lending regulations and that the risky loans represent a small fraction of its total loans. The CFPB's absence leaves mobile-home owners, who often earn less than $40,000 annually, with fewer protections against predatory lending practices.