Noting that for low-income families a manufactured home is the clearest path to home ownership. Ryan says, “Most manufactured homes are financed with personal property loans, like cars, rather than traditional mortgages, and the lenders have largely operated outside of federal regulators’ supervision. The CFPB regulations ensure that manufactured housing loans are subject to the same rules that apply to traditional mortgages.”
Ryan says the Manufactured Housing Institute (MHI) has been trying to convince the CFPB for months that without change to the new regulations it will cost consumers more to purchase manufactured homes, but the CFPB says the evidence is not conclusive in impacting MH buyers. He adds the industry “stands to reap huge profits from the change” that would result from H.R. 1779, and that the MHI has been pouring thousands of dollars into coffers of congressional candidates. MHProNews.com understands H.R. 1779 in fact modifies the definition of mortgage originator and of high-cost mortgages to ease access to manufactured home loans. Ryan asks rhetorically if you would rather have industry lobbyists or the CFPB writing your regulations.
Noting that H. R. 1779 has bi-partisan support, Ryan suggests that Reps. Terri Sewell (D-AL) and Maxine Waters (D-CA) may have been duped into supporting this bill that seeks to circumvent CFPB authority without evidence of the need to do so. He says, “This is how working families lose out; not with careful consideration of the data and the public interest, but in an obscure, politically-charged markup in room 2128 of the Rayburn House Office Building.”
MHProNews publisher L.A. “Tony” Kovach says, “Ryan and his associates need to sit down and get clear on the facts on MH lending. This is simple math; its cost of funds, cost to service loans, need for a profit and a market that the GSEs have not served, in spite of HERA 2008’s so-called Duty to Serve. Respectfully, Ryan has homework to do!”
More information, including quotes from more industry professionals, are found at this link. A video interview with finance expert Dick Ernst for MHProNews’ June issue will shed additional light on regulatory challenges the CFPB ought to address.##
(Image credit: U. S. House of Representatives)