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Amendment to High Cost Lending Provision has Bi-partisan Support

According to what the americanbanker tells MHProNews from Washington, a bipartisan group of lawmakers is attempting to amend a provision that will adjust the thresholds of high-cost loans under the Home Ownership and Equity Protection Act for manufactured home loans, while maintaining consumer protections. Under the current provision scheduled to go into effect Jan. 2014, many small balance loans used to buy manufactured homes would be classified as predatory and high-cost because they are short term and carry a high interest rate. In introducing HR 1779, the Preserving Access to Manufactured Housing Act, Reps. Stephen Fincher (R-Tenn.), Bennie Thompson (D-Miss.), and Gary Miller (R-Calif.) also want to exclude some sellers of manufactured homes from being classified as a loan originator unless they are paid by a lender, loan originator or mortgage banker. In addition, the loans cannot be sold to Fannie Mae and Freddie Mac, leading most lenders to avoid MH loans. In the Manufactured Housing Institute (MHI) newsletter, Nathan Smith, Chairman of MHI, says, “Low-income families across the country, particularly in rural areas, depend on access to financing for affordable manufactured homes. Not only are manufactured homes the largest form of unsubsidized affordable housing in the nation, but the manufactured housing industry is also a job creator and an important economic driver in many communities. We thank Representatives Fincher, Thompson and Miller for fighting to protect manufactured homeowners and our industry.” The Senate will see a similar bill introduced soon.

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