House Dems call for federal probe into Buffett companies

A group of Democratic lawmakers is calling for a multi-agency federal investigation into allegedly discriminatory lending practices by several companies under Warren Buffett’s business umbrella.

Democratic Reps. Maxine Waters (Calif)., Keith Ellison (Minn.), Emanuel Cleaver (Mo.) and Michael Capuano (Mass.) announced Wednesday that they asked the Department of Justice and Consumer Financial Protection Bureau (CFPB) to investigate Clayton Homes, Vanderbilt Mortgage and 21st Mortgage, subsidiaries of Buffett’s Berkshire Hathaway holding company.

The four lawmakers, all House Financial Services Committee members, asked the Justice Department and CFPB in a Jan. 7 letter made public on Wednesday to crack down on a pattern of allegedly predatory and discriminatory financing of manufactured homes targeting low-income and minority communities by the Buffett-controlled companies.

Lawmakers cited a joint investigation into the Buffett subsidiaries by The Seattle Times and BuzzFeed News that highlighted the practices.

“I was appalled by some of the findings in the recent articles,” said Waters, the committee’s top Democrat, in a statement. “There is no place for these kinds of sleazy and deceptive practices.”

Clayton Homes has panned the Seattle Times and BuzzFeed investigation as “activism masquerading as journalism” and denied any discrimination.

“Clayton is proud of our continued commitment to see that all families, including minority families, have access to our homes,” said the company in a December press release. “Our company is committed to building on our track record of helping individuals and families from all walks of life, including people in historically underserved markets, achieve the American dream of home ownership.”