The massive financial regulatory reform package that is currently the subject of a conference committee between House and Senate members will change the regulatory landscape for the SAFE Act, and likely may delay the final rule on its implementation.
Both the House and Senate bills include provisions for the creation of a Consumer Financial Protection Agency. Both the House and the Senate bills move jurisdiction of several laws over to the new agency. The SAFE Act is one of many laws that will be transferred over to this new agency. Should the financial reform package pass, and we have every indication it will, it is almost a certainty that HUD will lose jurisdiction of SAFE.
This news does not alter the industry’s efforts to seek clarity for retailers and salespersons that perform only administrative or clerical tasks, and to alleviate duplicative licensing for lenders who only originate personal property loans. There will be a federal agency that will have oversight over SAFE that will be promulgating a final rule, be it HUD or this new agency, that the industry will have to work with.
In addition, MHI is also not deterred from seeking passage of HR 5369 “Manufactured Housing Licensing Clarification Act of 2010.” The language in H.R. 5369 is intended to exempt activities which are administrative and clerical in nature that facilitate the sale of a home to a consumer such as assisting customers in completing paperwork. H.R. 5369 is an important step in bringing the influence of Congressional leadership into the process and will serve as a tool to elevate the need for clarification and relief for this industry before both Congress and HUD. The bill, in combination with over 5,000 comment letters submitted on the proposed rule to implement the SAFE Act, will assist MHI members and states in accomplishing the goal of allowing clerical and administrative tasks to be exempt activities under the SAFE Act.
MHI and its members will continue to seek additional co-sponsors to HR 5369, and will be seeking support to introduce companion legislation in the Senate.
MHI members with questions can contact Thayer Long at email@example.com.