The Manufactured Housing Institute (MHI) informs MHProNews.com the House Financial Services Committee adopted, by voice vote, the Preserving Access to Manufactured Housing Act (H.R. 1779). Although the measure will not be formally approved until a recorded vote is taken, which is expected to occur the week of May 19th, the bill would amend the  Dodd Frank Wall Street Reform and Consumer Protection Act to change the criteria by which home loans are classified “high-cost” while keeping in place  strong consumer protections. The bipartisan bill is sponsored by Representatives Stephen Fincher (R-TN), Bennie Thompson (R-MS) and Gary Miller (R-CA), and has 113 co-sponsors in the House from both sides of the aisle.

The legislation would amend the thresholds by which designated small balance manufactured home loans  are classified as high cost under HOEPA while maintaining  the consumer protections from predatory lending practices under Dodd‐Frank. The measure would clarify that manufactured home salespersons cannot be considered loan originators unless they are paid by a lender or mortgage broker, a clarification without which lenders would likely be unwilling to finance manufactured home loans, making it difficult for low-to-moderate income borrowers to access financing. During the markup a number of representatives spoke in favor of the measure including Financial Services Committee Chairman Jeb Hensarling and ranking member Rep. Maxine Waters (D-CA) who indicated she would support the bill despite lingering concerns.

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