The federal Consumer Financial Protection Bureau said in a lawsuit that a unit of Warren Buffett's Berkshire Hathaway ignored red flags that borrowers couldn't afford the mortgages they were given to buy manufactured homes from another Berkshire company.

The Consumer Financial Protection Bureau accused Tennessee-based Vanderbilt Mortgage & Finance of ignoring red flags in mortgage applications.

The CFPB says that Vanderbilt Mortgage & Finance, owned by Berkshire Hathaway, ignored evidence that borrowers couldn't afford loans to buy manufactured homes.

The U.S. Consumer Financial Protection Bureau sued a unit of Warren Buffett's Berkshire Hathaway on Monday, accusing it of pushing borrowers into unaffordable loans to buy homes from Clayton Homes, Berkshire's manufactured housing business.

Vanderbilt relied on unrealistic expectations of what borrowers would need financially after making their mortgage payment, according to the complaint.

The US government has sued a unit of Warren Buffett’s Berkshire Hathaway, accusing it of pushing borrowers into unaffordable loans—so customers would buy homes from the company’s manufactured housing business.

Warren Buffett's Berkshire Hathaway owns one of the world's most closely watched stock portfolios. It holds stakes in 46 stocks and exchange-traded funds that are worth $296.8 billion, or 30% of its entire market capitalization.

Warren Buffett is one of the most well-known investors in the world. The billionaire CEO of Berkshire Hathaway has an enviable track record of outperforming the S&P 500 index and is fond of

After a period of trimming stakes, Warren Buffett's Berkshire Hathaway ended the year making some sizable insider purchases. Building one of those stakes continued into the new year. Meanwhile, other insiders returned to add to stakes as well in a telecom and a boat maker.