MHI Dodd-Frank and CFPB Updates

MHI Seeks Industry Assistance to H.R. 1779

On May 30th, MHI held a call with manufactured housing state association executives to discuss outreach assistance needed to obtain more co-sponsors to H.R. 1779. To date, the following Representatives have agreed to co-sponsor the legislation (H.R. 1779) introduced by Reps. Stephen Fincher (R-TN), Bennie Thompson (D-MS) and Gary Miller (R-CA) in April: Andy Barr (R-KY), Marsha Blackburn (R-TN), Greg Harper (R-MS), Robert Hurt (R-VA), Tom Latham (R-IA), Blaine Luetkemeyer (R-MO), Mike Michaud (D-ME), Alan Nunnelee (R-MS), Steven Palazzo (R-MS), Dennis Ross (R-FL), and Joe Wilson (R-SC).

Additional assistance is needed from the manufactured housing industry to contact their U.S. Representatives and urge them to co-sponsor H.R. 1779. For a copy of the MHI Action Alert, visit the MHI Web site at manufacturedhousing.org. In addition, MHI created a preliminary listing of Representatives that MHI has identified as likely or potential supporters of the legislation and tips for conducting outreach to Representatives. To view, click here.

Industry Seeking Guidance on Connection Between Disparate Impact and Qualified Mortgage

On June 4th, eight financial services organizations sent a letter to the Consumer Financial Protection Bureau (CFPB) and Department of Housing and Urban Development (HUD) requesting guidance clarifying that compliance with the Ability-to-Repay/Qualified Mortgage final rule will not expose lenders to disparate impact liability under the Fair Housing Act and the Equal Credit Opportunity Act. The letter is in response to an April 2012 CFPB bulletin indicating the agency plans to apply a disparate impact test in exercising its supervisory and enforcement authority for all types of credit, including mortgage lending. To view the letter, click here. To view the CFPB guidance,click here.

CFPB Issues Examination Guidance for New Mortgage Rules

On June 4th, the CFPB issued updated exam procedures for new mortgage regulations issued in January 2013. The exam procedures are designed to provide financial institutions and mortgage companies guidance regarding what the CFPB will look for as the rules become effective. The new regulations affect appraisals, escrow accounts, and compensation and qualifications for loan originators. For more information, click here.

CFPB Expands Consumer Complaint Database

On May 31st, the CFPB announced it expanded its consumer complaint database to include searchable state-by-state information. According to the CFPB, the database has grown from roughly 19,000 credit card complaints to more than 113,000 complaints covering a variety of financial products, including home loans. For more information, click here.

Webinar to Cover NMLS Expansion

On June 19th, Ballard-Spahr will host a free webinar examining how states have expanded their use of the Nationwide Mortgage Licensing System (NMLS) to manage license authorities beyond the mortgage industry. NMLS expansion is expected to continue into 2013 and beyond. The webinar will discuss how companies can adapt their compliance practices to this new licensing landscape. For more information or to register for the webinar, click here.

Update on HUD’s Manufactured Housing Program

MHI Petitions Congress for Non-Career Administrator Appointment

On May 22nd leaders from MHI and MHARR met with Senator Joe Donnelly (D-IN) in Washington, D.C. to request his assistance in the appointment of a Non-Career Administrator for HUD’s Manufactured Housing Program. Senator Donnelly was supportive of the MHI/MHARR request and said he would assist the industry in this effort.

The Non-Career Administrator position has been vacant for a number of years, despite the aggressive efforts by a unified industry to seek the appointment of a qualified Administrator who could effectively manage the manufactured housing program and serve as an assertive voice for the manufactured housing industry as a solution to HUD’s affordable housing mission.

MHI responds to HUD’s Notice of Nonconformance

On May 24th MHI asked HUD to delay enforcement of its May 16th Notice of Nonconformance with Safety Standards—Plastic Toilet Seats. During an audit by HUD’s Monitoring Contractor, the Institute for Building Technology and Safety, it was discovered that the majority of plastic toilet seats utilized by virtually all manufacturers do not meet testing and certification requirements of the HUD-Code. This finding requires the toilet seat suppliers to change, test, and certify their product. In the meantime the manufacturers must find other suppliers of toilet seats that meet the HUD requirements. MHI understands that the product suppliers are taking the necessary steps to meet the standards. MHI’s letter to the Acting Deputy Administrator of the Manufactured Housing Program, Henry Czauski, also asked HUD to consider waving this outdated testing requirement for plastic toilet seats, as it is not a safety issue and not a requirement of other residential building codes. A waiver would allow the Manufactured Housing Consensus Committee to consider the issue and recommend changes to the HUD Code. Click here to view MHI’s letter to HUD.

HUD Solicits Proposals for a New Administrator for the Manufactured Housing Consensus Committee

On May 30th HUD issued a Request for a Quote (RFQ) for a new Administrative Officer (AO) to administer the Manufactured Housing Consensus Committee (MHCSS). The current contract, which has been held by the National Fire Protection Agency (NFPA) since 2001, has expired and HUD has extended it temporarily until a new four year contract is adopted. Due to the requirements in federal law, the pool of qualified bidders may be very small. According to the RFQ, HUD is seeking “a recognized, voluntary, private sector, consensus standards body with specific experience in developing model residential building codes and standards involving all disciplines regarding construction and safety.”

The International Code Council (ICC), that adopts the residential and commercial codes for site built structures and the NFPA, which has its own code for manufactured housing and manufactured home installations, are the two organizations that currently meet this requirement. It is uncertain at this writing if either organization plans to respond to HUD’s solicitation. The deadline for proposal submission is June 20, 2013.

Click here to view the proposal.

Modular Housing Shipments Up in First Quarter 2013

This week the National Modular Housing Council reported 2,936 homes shipped in January through March this year in its Quarterly Modular Housing Report. This is an increase of 3.9 percent over the same quarter in 2012.

According to an analysis by Fred Hallahan of Hallahan Associates, who tracks modular home shipments nationwide, modular activity from January through March 2013 continues a pattern of six consecutive quarterly year to year increases in modular activity that have occurred since the third quarter of 2011.

Relative to 2013 first quarter total home building activity, the 3.9 percent increase in total modular activity lags behind strong increases in conventional residential building permit activity as follows:

• Total 2013 first quarter permit activity for conventional residential housing, representing 203,800 homes, increased 22.3 percent over 2012;

• Single family 2013 first quarter permit activity, representing 133,300 homes, increased 25.9 percent over 2012; and

• Multi-family 2013 first quarter permit activity, representing 70,500 homes, increased 16.3 percent over 2012.

The comparison of modular activity with single and multi-family site built housing, indicates that overall modular production will continue to grow but may continue to lose market share within the total home building sector.

With the notable exceptions of New York State (the most active modular state) and North Dakota (the fourth or fifth most active modular state), 2013 multi-family modular activity is typically not a significant contributor to current modular activity for most states and for most manufacturers.

Based on current information available relative to economic conditions, in 48 states, the 2013 annual modular consumption is projected to exceed 14,000 homes representing an annual increase of more than 5 percent compared to 2012.

5,321 New HUD-Code Homes Shipped in April 2013

In April 2013, 5,321 new manufactured homes were shipped, up 14.4 percent from April 2012. Increases were across the board with shipments of both single-section and multi-section homes up compared with the same month last year. Total floors shipped in April 2013 were 8,200, an increase of 15.1 percent compared with April 2012.

In comparison with 2012, 2013 started with an increase in January shipments, February and March recorded a decline, followed by the increase in April. For the first four months of this year, shipments totaled 18,132 homes compared with 17,430 homes in 2012, a net increase of 4.0 percent.

The seasonally adjusted annual rate (SAAR) of shipments was 60,767 in April 2013, up 8.3 percent from the adjusted rate of 56,119 in March 2013. The SAAR corrects for normal seasonal variations and projects annual shipments based on the current monthly total.

The number of plants reporting production in April 2013 was 122 and the number of active corporations was 46, both unchanged from the prior month.