The Preserving Access to Manufactured Housing Act of 2013—HR 1779—remedies the unintended consequences of the Dodd-Frank Act that disproportionately affect affordable manufactured home lending. To date, 20 Democrats and 85 Republicans have signed on as co-sponsors of the legislation, indicating momentum is growing, but more support is needed to insure the bill’s passage. One industry insider said Obama Care is to health what Dodd-Frank and the CFPB’s policies are to home lending–”disastrous.” Richard “Dick” Jennison, CEO of the Manufactured Housing Institute (MHI), while noting state manufactured housing associations have done a good job in garnering support for 1779, says, “We still need help in securing co-sponsors in some of our key manufactured housing states in order to push us across the finish line! We are expecting the Senate bill to drop (be introduced) right after the Thanksgiving recess.” Under the CFPB’s pending rules, the cost for a lender to originate a $35,000 manufactured home (MH) loan would be similar to the cost to originate a $250,000 conventional housing loan. Without a sufficient spread on rates, points or fees, the low cost MH loans can’t be profitably made. Ohio’s Democratic Senator Sherrod Brown and several colleagues sent a letter to CFPB’s Director Richard Cordray in support of a regulatory fix, while 118 members of the House of Representatives have asked Cordray to delay implementation of the new mortgage finance rules for one year, until January, 2015. Congressman Stephen Fincher (R-TN), author of HR 1779, said in an interview with MHProNews that “The government has an incredibly poor track record of picking winners and losers, and it needs to stop doing it. Instead, we need for Congress and the Administration to get out of the way and allow businesses and industries to make decisions that will allow them to thrive and create more jobs.” Fincher, himself a small businessman and a farmer stated, “I stepped up because this is a common sense issue. The government’s overreach and bad regulations here are hurting jobs and families. Something has to be done to stop that, and H.R. 1779 is just one way we can help maintain the quality of life for Americans across the country.” Sam Landy, CEO of land lease community owner UMH Properties, is encouraging residents and staff to contact their elected representatives in support of HR 1779. Landy says, “From my perspective if the government just removes the provisions of the SAFE Act and Dodd-Frank that stop us from selling homes to people who can afford them, I’d be happy enough.” He says a buyer can have a three-bedroom, two-bath manufactured home for $70,000, including the cost of a lot. For more information, please click here.
