This week, the Senate Banking Committee adopted financial services reform legislation on a party line vote. The legislation now moves to the Senate floor for debate and consideration. Because of the controversial nature of the legislation, it will need to be amended in order to attract a sufficient number of Republican Senators required for passage. The House passed a companion bill in December.

One of the most controversial provisions in the legislation is the creation of an independent Consumer Finance Protection Agency (CFPA). The CFPA would regulate all consumer loan products including home loans, credit cards, student loans, auto loans, etc. Because the authority of the proposed CFPA is so broad, it could impose unreasonable standards and liability exposure on any provider of financial services. MHI was successful in obtaining an exclusion for manufactured housing and modular housing retailers in both the House bill and the bill adopted earlier this week by the Senate Banking Committee. MHI will continue to follow this legislation very closely in that it is increasingly likely that it will be enacted into law later this year.

For more information, and if you are an MHI member, please contact Brian Cooney at bcooney@mfghome.org.