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The U.S. Senate recently passed a bill that would allow manufactured housing companies to refer buyers to affiliated lenders. Clayton Homes, a subsidiary of Warren Buffett's Berkshire Hathaway, could benefit greatly from such legislation.
Clayton's marketing vice president Carl Hill says that the current shortage of available inventory on the housing market is forcing many buyers into homes that are smaller and older to keep within their budgets. Hill says of the Congressional bill, “We’re particularly interested in supporting legislation that makes for a more open and competitive marketplace," Reuters reports. Opponents of the bill say it could actually constrain competition, and saddle homebuyers in lower income brackets with higher borrowing costs.
Clayton also dominates the manufactured home market with a 49 percent share, Buffett said in February. Such homes are often bought by people with low credit scores, low incomes, and financial profiles that can come undone by divorce or death. Clayton is trying to move past reports three years ago in the Seattle Times claiming it exploited black, Latino and Native American borrowers into unaffordable subprime loans. The company has denied those allegations and Buffett has defended Clayton repeatedly ...
