The U. S. House of Representatives Financial Services Committee passed the bipartisan Preserving Access to Manufactured Housing Act (H.R. 1779) which protects the ability of manufactured home (MH) consumers to buy, sell and refinance affordable manufactured homes. The measure would alter the Dodd-Frank Act in addressing criteria by which MH loans are classified as high-cost. Noting it is the largest form of unsubsidized affordable housing in the nation, Nathan Smith, Chairman of the trade association Manufactured Housing Institute (MHI), said, “The ability to access affordable manufactured homes is vital to millions of low- and moderate-income Americans, and our industry is also an important economic driver and job creator in many communities across the country. This legislation would ensure that manufactured housing remains a viable affordable housing option, particularly in rural, distressed and underserved areas. We urge the full House of Representative to move swiftly to consider this important legislation.”

The Consumer Financial Protection Bureau (CFPB), in failing to recognize the uniqueness of manufactured home loans, defines many small balance loans used to buy MH as predatory and high cost: The dollars to originate and service a $250,000 loan is the same as a $25,000 loan, but the percentage cost of each loan is greatly different, and may put the MH loan in the category of a HOEPA high-cost loan, making it unlikely they will be offered to buyers because of the increased lender liabilities. According to the American Housing Survey, since roughly half of the nation’s 8.5 million manufactured homes have a purchase price of less than $30,000, those of less modest means who also do not qualify for traditional mortgages could be shut out of the housing market altogether. In addition, current MH owners would have difficulty refinancing their homes.

H.R. 1779 would also make it clear that MH salespeople are not loan originators lest they are being paid by a lender. The bill has support from 113 legislators on both sides of the aisle. For additional information, please click here. MHProNews understands there is a similar bill in the Senate, S. 1828. ##

(Image credit: facebook.com)