The Manufactured Housing Institute (MHI) tells MHProNews that Representatives Stephen Fincher (R-TN), Terri Sewell (D-AL), Andy Barr (R-KY), and Kyrsten Sinema (D-AZ) introduced the Preserving Access to Manufactured Housing Act. The proposed bill is designed to alleviate the regulatory burdens that have impeded consumers’ ability to purchase manufactured housing, which as industry professionals know, is a critical resource for low and moderate income families across the country.
Introduced by a bipartisan group of members who serve on the House Financial Services Committee, the Preserving Access to Manufactured Housing Act addresses recent federal regulations implementing the Dodd-Frank Act that do not reflect the unique nature of the manufactured home financing and sales process. The underlying consumer protections of the Dodd-Frank Act will remain in place under this legislation.
The Congress.gov website tells MHProNews that in the 113th Congress, H.R. 1779 was cosponsored by 114 Members. The legislation was passed by the House Financial Services Committee by a voice vote on May 22, 2014. Companion legislation in the Senate, S. 1828, was cosponsored by 16 Senators from both sides of the political aisle.
As we reported last year, The Preserving Access to Manufactured Housing Act amends the thresholds that have caused small balance manufactured home loans to be classified as high-cost. Due to the increased lender liabilities associated with making and obtaining high-cost mortgages, many lenders have exited lending, including U.S Bank who last year pointed to regulatory burdens in explaining their exit from the manufactured housing market. denying access to necessary credit for new and existing manufactured homes.
As MHI explains, while the cost of originating and servicing a $250,000 loan and a $25,000 loan are generally the same in terms of real dollars, the cost as a percentage of each loan’s size is significantly different. This difference causes the smaller-sized manufactured home loan to potentially exceed the new thresholds and be categorized as high-cost, even though there is nothing predatory about the features of the loan.
The bipartisan legislation also clarifies that manufactured home retailers and salespersons are not loan originators. The new CFPB definition of a loan originator is based on traditional mortgage market roles that do not equate with the business model of the manufactured housing industry, including lending and retail sales practices.
In checking with Rep. Fincher’s office today, MHProNews was told that a new bill number has not yet been issued. Since then, the bill which was introduced yesterday, February 2, has been labeled HR 650. MHProNews will track this bill, and the expected companion bill that will drop in the Senate as they progress. ##
(Graphic Credit: WikiCommons)
Article submitted by Sandra Lane to – Daily Business News – MHProNews.
