Case Study: Vanderbilt Mortgage. May, 2025

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Vanderbilt Mortgage is being sued by mortgage borrowers for fraud. The basis of the claim is that Vanderbilt sold manufactured homes to unqualified borrowers who subsequently defaulted on their loans. This type of fraud would fall under application fraud on the part of the lender.

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Tracy Taylor, from Tennessee, and Christopher Stockton, from Alabama, accuse Vanderbilt of violating the Truth in Lending Act and Regulation Z's minimum underwriting standards. The lender has reportedly ignored red flags in underwriting since 2014. 

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Law360 reported the new complaint.

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The lawsuit alleges that Vanderbilt's residual income model relied on fraudulent underwriting calculations. The borrowers allege that Vanderbilt disregarded evidence of debts during collection and made loans to borrowers who had negative net residual income.

 

Vanderbilt denies all allegations, calling accusations about its underwriting untrue, and stating it exceeds legal requirements to assess a borrower's financials.

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The complaint inplies damages exceeding $5 million, and more than 100 putative class members. Plaintiffs want to bar Vanderbilt from underwriting using its "unlawful Living Expense Estimate."

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Vanderbilt, headquartered in Maryville, Tennessee, had $4.03 billion in origination volume in 2024, according to a Richey May database of Home Mortgage Disclosure Act data. Much of that lending was based in the Southeast, with a leading 18% of production in Georgia. 

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The CFPB dismissed a case against Vanderbilt, with prejudice, earlier in 2025, meaning the lawsuit cannot be refiled.

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Please contact us at sales@waquis.com or fill out our contact form to learn more about how to prevent mortgage fraud.

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Mortgage fraud. Post-Closing Audits. Pre-Funding Reviews. Mortgage Quality Control.