Sunday, April 12, 2015

Clayton Homes Denies 'Predatory' Label It Received in Seattle Times Article

An investigation made public this week alleges that Berkshire Hathaway Inc.’s Clayton Homes division sometimes uses deceptive practices to “trap” lower-income customers in high-rate mortgages and “rapidly depreciating” manufactured homes.

Clayton, in a press release forwarded Friday from Berkshire’s Omaha headquarters, called the story “a misleading report” and disputed its allegations, saying that the company’s “policies, procedures and training are designed to ensure that customers have a choice of lenders.”

Click Here to read the entire article.


Steve L said...

Clayton has a PR problem.
They have the most different brand names of "Chattel" lenders. They have the most name brand of factory under Clayton homes. An unsuspecting home buyer do not know all brand names of Clayton or are made aware of the controlling interest during the buying process.

Anonymous said...

Reading the Omaha article is confusing at best as the reporter mixes statistics between modular and manufactured as well as FHA and manufactured lending practices. Careful reading indicates Clayton in line with the standard withing the manufactured industry. Like other predatory loan stories one picks and chooses "consumer stories" to match the viewpoint.

Chattel loans have interest rates based on the clients credit and history and like other titled vehicles rates rise as credit scores go down.

Maybe there are cases that cross the line (like FHA or conventional lenders) but this article does not make a solid case for the label "predatory" .