Buffett again defends lending standards at Clayton Homes
OMAHA, Neb. (AP) – Investor Warren Buffett says Berkshire Hathaway’s manufactured home unit lends responsibly and he isn’t concerned about Clayton Homes’ practices.
Buffett was asked about Clayton on CNBC Monday. Buffett spent more than five hours answering questions over the weekend at Berkshire’s annual meeting.
Clayton’s lending was questioned last month in a story by The Seattle Times and The Center for Public Integrity. The story said Clayton appeared to be using predatory lending practices, and some buyers were pressured into loans that they couldn’t afford.
Buffett says Clayton generally holds on to the loans it makes, so when buyers default it loses money.
Buffett says he hasn’t received any complaints about Clayton in the past three years when 300,000 home loans were made, but he couldn’t discuss specific cases the article mentioned.