The defeat of these two amendments means access to financing of MH, as laid out in the Preserving Access to Manufactured Housing measure (HR 650/S 682), remains intact, supported by MHProNews and MHLivingNews publisher L. A. “Tony” Kovach, see the download here and as noted here.
MHI has been working with Congress to pass the Preserving Access to Manufactured Housing Act (H.R.650/S.682), dealing with Appropriations Committee members, Committee leadership, co-sponsors of S.682 and state association directors to ensure the MH language is included in the appropriations bill that may be voted on before Congress adjourns.
The first amendment, defeated by a vote of 167-255, would have deleted section 637 from the measure which ensures that manufactured home retailers are not unfairly considered loan originators as long as they do not receive compensation for referrals.
The second amendment, defeated by a vote of 162-255, would have struck Section 638 of the bill that defines the thresholds for which mortgage loans are considered “high cost.” Since the Consumer Financial Protection Bureau (CFPB) considers costs as a percentage of a loan, smaller MH loans are suddenly thrust into the “high cost” designation, which increases lender liability. The result is many lenders have ceased making MH loans altogether, while others have stopped originating loans under $20,000, leaving those who are trying to buy or sell MH under $20,000 without financing options.
The Home Mortgage Disclosure Act reports the regulations have caused low balance loans for MH to have fallen by over ten percent, while site built home loans have risen five percent.
“This is an important milestone for millions of working families and retirees who are currently being shut out of the market for quality, unsubsidized affordable housing,” said Lesli Gooch, MHI’s Senior Vice President for Government Affairs and Chief Lobbyist.
H. R. 650, the Preserving Access to Manufactured Housing Act, passed the House in April, 2015, with bipartisan sponsorship. The companion bill in the Senate, S. 682, which also has bipartisan sponsorship, was passed by the Senate Banking Committee in June, 2015, but has yet to pass the full Senate. ##
(Image credit:Manufactured Housing Institute logo)
