Response to CFPB Lawsuit

For 50 years, Vanderbilt Mortgage has increased homeownership in the U.S. The CFPB’s lawsuit is unfounded and untrue, and is the latest example of politically motivated, regulatory overreach.

Vanderbilt Mortgage's underwriting processes exceed the legal requirements for assessing a borrower’s ability to repay loans by considering both monthly debt-to-income ratio and residual income, while the law only requires the use of one or the other. Vanderbilt Mortgage goes further by taking the greater of the borrower’s actual reported expenses or an estimated living expense for the family size, similar to that used by the Federal VA loan program.

The CFPB examined tens of thousands of Vanderbilt Mortgage loans and identified less than 0.8 percent, over a six-year period, that allegedly should not have been made. Many of those loans have not been delinquent. Vanderbilt Mortgage follows the law, and the facts bear that out.

Despite regularly blessing Vanderbilt Mortgage’s underwriting practices in the past, the CFPB is now demanding compliance with an unknown and unknowable new “standard” not addressed in the law. Far from protecting American consumers, the CFPB’s lawsuit will deprive credit worthy borrowers of owning a home.

The lack of attainable housing is one of the greatest threats facing our country. Vanderbilt Mortgage remains committed to protecting the American public’s access to fair lending services while providing a path to homeownership for hardworking families.