On July 15, the Senate approved the conference report to the Restoring American Financial Stability Act of 2010 (H.R. 4173) on a vote of 60-39. Three Republicans—Sens. Scott Brown (R-MA), Susan Collins (R-ME) and Olympia Snowe (R-ME)—joined with Democrats on a largely party line vote to approve the measure. The House passed the measure on June 30. President Obama is expected to sign the measure.

The centerpiece of the legislation is the creation of a new independent Bureau of Consumer Finance Protection, which will have substantial authority to regulate financial activity.

Regulation and implementation of a number of housing- and mortgage-related legislation is transferred to the new bureau, including the SAFE Act. However, the legislation specifically exempts manufactured home retail sales activities from regulation by the new entity.

While it is unclear whom the President will nominate to lead the new agency, many speculate that Elizabeth Warren, chairman of the congressional panel overseeing the Troubled Asset Relief Program (TARP), could serve as the agency’s inaugural director. She has received the endorsement of Financial Services Committee Chairman Barney Frank (D-MA).

The new bureau will be housed within the Federal Reserve. While the Federal Reserve has no rule-making authority, the law provides that the new Financial Stability Oversight Council—a nine-member panel of regulators that includes the Chairman of the Federal Reserve Board and the director of the new Bureau of Consumer Finance Protection—can override a consumer bureau action if two-thirds of the members decide the rule threatens the safety or soundness of the financial system.

MHI members can contact Jason Boehlert at jboehlert@mfghome.org.