MHI’s CFPB and Financial Services Update

Senate Banking Committee Set to Consider GSE Reform Legislation

On April 29th, the Senate Banking Committee is scheduled to hold a markup of the Housing Finance Reform and Taxpayer Protection Act of 2014 (currently unnumbered). The measure would wind-down Fannie Mae and Freddie Mac and replace them with a new government-backed secondary finance mechanism.

Fannie Mae and Freddie Mac would be replaced by a proposed Federal Mortgage Insurance Company (FMIC) that would be modeled after the Federal Deposit Insurance Corporation (FDIC). It would be responsible for collecting insurance premiums on mortgages securitized through the agency and would mandate 10 percent private capital upfront for those utilizing FMIC’s standardized securitization platform.

As advocated for by MHI, manufactured home loans secured by personal property would be eligible for securitization under FMIC and would also be eligible for affordable housing support through a newly envisioned Market Access Fund.

Despite the scheduled mark-up, there is concern among the committee’s Democratic leadership that progressive members of the panel may withhold support for the bill. It is unclear whether liberal members, including Sens. Sherrod Brown (D-OH), Jeff Merkley (D-OR) and Elizabeth Warren (D-OH), who have been critical over the bill’s perceived lack of affordable housing provisions will vote to move the measure out of committee. There have been quiet reports that some Democrats have been urging Chairman Johnson to delay the markup until unanimous support among the committee Democrats can be solidified.

Concerns have also been raised by groups representing small and community banks, such as the Independent Community Bankers Association (ICBA), Credit Union National Association (CUNA) and National Association of Federal Credit Unions that the Johnson-Crapo measure is tilted to the advantage of larger banks and that the existing secondary market system “works well” for smaller lenders. To view a letter outlining these organization’s concerns, click here.

4,359 New HUD-Code Homes Shipped in February 2014

In February 2014, 4,359 new manufactured homes were shipped, an increase of 5.9 percent from February 2013. Compared with the same month last year, shipments of single section homes remained flat while shipments of the multi-section homes showed an increase of 11.8 percent. Total floors shipped in February 2014 were 6,706, an increase of 7.9 percent compared with February 2013.

The seasonally adjusted annual rate (SAAR) of shipments was 61,881 in February 2014, down 2.5 percent from the adjusted rate of 63,457 in January 2014. The SAAR corrects for normal seasonal variations and projects annual shipments based on the current monthly total.

The number of plants reporting production in February 2014 was 123 and the number of active corporations was 46, both unchanged from the numbers in January 2014.