On September 15, the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises held a hearing on the future of housing finance and the status of Government-Sponsored Enterprises (GSEs). In his testimony, Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco indicated that a principal focus of …
On September 16, it was reported that in the coming weeks Harvard law professor Elizabeth Warren “whom many predicted would be nominated as the inaugural director of the newly established Bureau of Consumer Finance Protection (CFPB)” will be appointed to the position of Special Advisor to Treasury Secretary Timothy Geithner …
MHI’s Monthly Economic Report© for July 2010 is now available. The Manufactured Housing Institute’s actual shipments report indicates that 4,257 new HUD Code homes were shipped in July 2010, down 3.8 percent from July 2009. Trends by housing type varied with multi-section home shipments down compared with the same month …
4,257 New HUD Code Homes Shipped in July 2010, down 3.8 Percent from July 2009 Read More
After a month long Summer Recess, a four-week session of Congress opens next Tuesday, September 14th. With the economy and jobs continuing to make headlines, and with many vulnerable Congressional Democrats feeling pressure at home in an election year, several initiatives related to economic and fiscal policies are expected to …
Congress Resumes Business Next Week, MHI Prepared to Push Industry Issues Forward Read More
Over the past week, the Federal Housing Administration has issued two mortgagee letters implementing changes to the traditional FHA Single Family Mortgage Program (Title II).
Minimum Credit Scores and Loan-to-Value Ratios
On September 3, 2010, HUD released Mortgagee Letter 2010-29, Minimum Credit Scores and Loan-to-Value Ratios, which changes minimum credit scores and loan-to-value (LTV) ratios for FHA insured Single Family Mortgages effective October 4, 2010. Borrowers with a credit score below 500 will not be eligible for FHA-insured mortgage financing. Borrowers with a credit score between 500 and 579 will be limited to 90 percent LTV, which will require a 10 percent down payment. Borrowers with a credit score of 580 or higher are eligible for maximum financing, which requires a minimum 3.5 percent down payment. Borrowers with nontraditional credit histories may be eligible for maximum financing. The letter does not make any changes to the seller concession caps at this time. Click here to view Mortgagee Letter 2010-29: Minimum Credit Scores and Loan-to-Value Ratios
On September 7, USDA’s Rural Development Office announced that it will begin obligating Section 502 Single Family Housing Guaranteed Loans, a month sooner than it expected. Click here to view the announcement. The backlog of approximately $1.6 billion in Conditional Commitments issued after May 26, 2010 with the proviso, “subject …
USDA Single Family Housing-Guarantee Loan Program Funding Now Available Read More
Last Month, the U.S. Department of Energy (DOE) announced 15 research and development partnerships to help dramatically improve the energy efficiency of American homes. Representatives from the manufactured housing industry were selected as one of those partnerships, who will share in $30 million for the initial eighteen months of the …
MHI and Industry to Participate in DOE Energy Research Partnership Read More
USDA Housing Administrator Tammye Trevino announced on August 23, that implementation of the new funding fees for the Section 502 Single Family Loan Guarantee Program is expected by mid-September. Legislation was recently signed into law giving USDA the authority to increase the up-front fee to up to 3.5 percent of …
USDA Issues Funding Notice Regarding the Single Family Housing Guarantee Loan Program Read More
On August 23, 2010, MHI submitted comments to HUD’s proposed rule to establish a procedure allowing manufacturers to deviate from the existing alternative construction (AC) requirement to conduct on-site completion of aspects of construction that cannot reasonably be completed in the factory. In its comments, MHI said, “while we are …
In Cityscape: A Journal of Policy Development & Research Volume 12, No. 2 published by the US Department of Housing and Urban Development, an article entitled “Trailers and Trouble? An Examination of Crime in Mobile Home Communities” concludes that there is no significant difference between the rates of crime in …
On August 17, 2010, MHI attended the “Conference on the Future of Housing Finance” sponsored by the Departments of the Treasury, and Housing and Urban Development (HUD) in Washington, D.C. This high level meeting was structured to engage public and private sector housing stakeholders and receive input on the future …
In a letter this week to FHA Commissioner David Stevens, MHI urged FHA to reconsider its proposal to reduce the limit on seller concessions from 6% to 3% on FHA Title II loans. MHI submitted comments in a recent letter to FHA Commissioner David Stevens. Click here to view the …
On August 10, Ginnie Mae announced risk management changes to “further strengthen its operations and to ensure that its program requirements better align with the rapidly changing housing finance market.” The enhanced risked management controls include increased net worth requirements for issuers of mortgage-backed securities, the implementation of institution-wide capital …
On August 16, the Federal Reserve issued final rules on loan originator compensation and steering (yield spread premiums), home-secured credit (reverse mortgages) and notification of mortgage loan sales or transfers. Yield Spread Premiums: The new rules would no longer allow loan originators to receive compensation based on the interest rate …
Fed Releases New Rules on Yield Spread Premiums, Loan Disclosures Read More
On August 16, MHI submitted comments to HUD opposing its proposed rule to establish new testing procedures for roof trusses. The proposed rule would, among other things, require all existing roof truss designs (approximately 1500) to be retested and recertified utilizing new, more time consuming and costly methods. MHI argued …
MHI Submits Comments to HUD on Proposed Roof Truss Testing Rule Read More
Government Role Still to be Determined
On August 17, 2010, MHI attended the “Conference on the Future of Housing Finance” sponsored by the Departments of the Treasury, and Housing and Urban Development (HUD) in Washington, D.C. This high level meeting was structured to engage public and private sector housing stakeholders and receive input on the future of the housing finance industry. Participants included senior level executives from top mortgage lenders, investors, academics and public officials. Congressional policy makers and leading housing association executives were also among the roughly 70 or so invitees participating in this highly anticipated event, including the Manufactured Housing Institute (MHI).
During the month-long August recess, assistance is needed from MHI members to personally contact their Senators and specifically request they cosponsor, the “Energy Efficient Manufactured Housing Act” (S. 1320). There continues to be a lack of formal Republican support for the bill because of the cost associated with underwriting the measure. Given the current partisan political climate, Republican support of the measure becomes all the more critical. Without bi-partisan support passage of the bill is unlikely.
On Tuesday, August 10, MHI held one of its regularly scheduled conference calls with MHI member state association executive directors. Over 30 state associations participated on the call.
Political pundits consider 64 House seats, including nine members of the Manufactured Housing Congressional Caucus, the most competitive congressional races in the 2010 Election cycle. Click here for the list.
On August 11, President Obama announced the availability of expanded assistance through the Treasury Department’s Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets. The administration will make an additional $2 billion in assistance available, through state housing finance agencies (HFAs), for homeowners struggling to make mortgage payments due to unemployment.
