The Consumer Financial Protection Bureau (“CFPB”) filed a complaint against a manufactured home loan company (the “Company”) on January 6, 2025, alleging that it originates loans that borrowers are unlikely to be able to repay in order to sell more homes, resulting in additional fees, penalties, and sometimes the loss of their homes.
The Company originates loans for manufactured homes across the country. The CFPB claims that the Company fell short in its assessments of borrowers’ ability to repay loans by manipulating lending standards if borrowers did not make a sufficient income, fabricating unrealistic estimates of living expenses, and making loans to borrowers it projected would not be able to pay. The CFPB claims the alleged actions violated the Truth in Lending Act and Regulation Z’s minimum underwriting standards and the Consumer Financial Protection Act’s prohibition against providing a financial product not in conformity with federal law.
The CFPB requests that the Court enjoin the Company from further violations of these acts and grant injunctive relief and additional monetary relief against the Company.
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