Breaking News — GAO Issues Report on Manufactured Housing
The Government Accountability Office (GAO) issued a long-awaited report on the Department of Housing and Urban Development’s (HUD) Manufactured Housing Program. The report – Manufactured Housing: Efforts Needed to Enhance Program Effectiveness and Ensure Funding Stability– makes a number of recommendations that have been previously proposed by MHI.
The report, which was compiled at the request of the House Financial Services Committee, addresses the extent to which HUD has met the “key purposes” of the Manufactured Housing Improvement Act of 2000 (Improvement Act) and to assess whether user fees adequately cover program costs.
The GAO found that HUD has not fully achieved the key purposes of the Improvement Act, which include: establishing a consensus-based process to update and interpret the manufactured housing construction and safety standards; facilitating the availability of affordable manufactured housing; and ensuring uniform and effective enforcement of the standards.
Gaoissuesreportonmanufacturedhousinguse to read more.
Recapping the July 22nd Wind Test
Over the past week, NBC News has been rebroadcasting the story it originally aired on the manufactured home wind test conducted last week in South Carolina. Click here to view the original Today Show coverage that aired on July 23rd. While MHI has sent out multiple updates and alerts, the fact that NBC continues to use the story suggests the industry should keep up its efforts to point out the positive aspects of the test.
As previously noted, the test was conducted in several phases. Prior to the phase which gave rise to the footage used in the broadcast, the Insurance Institute for Business & Home Safety (IBHS) tested attached structures on a HUD-Code Zone III home – first on a standard carport installed using “conventional installation procedures” and then using numerous procedures designed to fortify the carport. Once the attached structure testing was complete, a window and a door on the home’s windward side was opened “to evaluate performance of a Zone III manufactured home during a high wind event.”
Regarding this previous portion of the test, IBHS indicated: “When one of these high wind-rated HUD-Code homes is installed on a permanent foundation, in most of the country, it would end up resisting wind storms better than surrounding site built homes.”
Recappingthewindtest2 to read more about the July 22nd wind test.
MHI CFPB and Financial Services Updates
CFPB Proposes HMDA Changes
The CFPB has proposed several changes to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The Bureau is seeking to add several new categories for reporting by lenders and make changes in how the data is reported.
The rule would require lenders to report property value, loan term, total points and fees, the duration of teaser rates and the age and credit score of the applicant or borrower. The CFPB also proposed that lenders submit data on an applicant’s debt-to-income ratio, interest rate and total points charged, which the Bureau said would help it evaluate the impact of its mortgage rules. In addition, all dwelling-secured loans would be subject to the rule, including manufactured homes.
The Bureau is also seeking to require additional information collection and reporting on manufactured home loans, including information regarding the legal classification of the manufactured home-to include listing whether the home is legally classified as real property or personal property.
The CFPB will be collecting comments on the proposed rule through October 22, 2014. 201407 cfpb proposed rule home mortgage disclosure regulation 3to view the proposal.
August12014cfpbandfinancialservicesupdatesa to view more CFPB and Financial Services Updates.
MHI Continues to Push FHFA for Increased GSE Access for Manufactured Home Loans
In May, the Federal Housing Finance Agency (FHFA) released its 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac. 2014strategicplan05132014final to view the plan. Included in the agency’s goals going forward for this year is a plan to revisit, and potentially re-propose, the Duty-to-Serve (DTS) rule that was issued in draft form in 2010.
The DTS requirement was established by Congress as part of the Housing and Economic Recovery Act of 2008 (HERA; P.L. 110-289). The legislation found that the GSEs had historically underserved three distinct housing markets: affordable housing, rural, and manufactured housing. As part of the requirement, Fannie and Freddie were tasked with establishing programs, including a secondary market access mechanism for manufactured home loans secured by personal property.
MHI has been working with its supporters on Capitol Hill to directly urge, recently confirmed, FHFA Director Mel Watt to expand the DTS rule to ensure that manufactured home loans secured by personal property have the ability to access Fannie Mae and Freddie Mac. In a letter sent to Director Watt, MHI indicates:
Manufactured home-only loans (aka personal property, chattel, etc.) comprise between 60-70 percent of all manufactured home financing. It is impossible, in any meaningful fashion, to dutifully serve the needs of the manufactured housing market-especially those seeking to benefit from the affordability of a manufactured home-without providing manufactured home loans secured by personal property the opportunity to access secondary market mechanisms, absent barriers and prejudicial treatment.
Net Zero Manufactured Home Receives DOE Housing Innovation Award
The U.S. Department of Energy (DOE) recently declared MHI member, SE Homes/Clayton, a DOE Zero Energy Ready Home Housing Innovation Award Winner for 2014. It is the first manufactured home in the nation to qualify for this DOE Zero Energy Ready Home designation. According to DOE, the Zero Energy Ready Home “represents a whole new level of home performance, with rigorous requirements that ensure outstanding levels of energy savings, comfort, health, and durability.” SE Homes will compete in the Affordable Housing category with other homebuilders throughout the country for the DOE Grand Award to be announced in September.
The SE HOME’s Zero Energy Home is one of three homes that are part of a year-long test underway by the Systems Building Research Alliance (SBRA) to evaluate energy performance. The homes represent three levels of energy efficiency: The Zero Energy Ready Home, a home that complies with the HUD thermal standards, and an ENERGY STAR home.
Fifth Edition of the FACTs: HUD’s ManuFACTured Housing Newsletter is Available
Click here to view the fifth edition of The FACTs: HUD’s ManuFACTured Housing Newsletter. The Office of Manufactured Housing Programs will periodically issue the FACTs to enhance communication with consumers, industry, and other stakeholders by providing information on Manufactured Housing topics of interest.
State Association Meetings and Events for August
Please see below for a list of state association meetings and events being held in August. Click here to view the full calendar of events. State association executives, please forward your meeting information for inclusion in our online calendar of events and Week in Review to Cheryl Berard firstname.lastname@example.org. Listings for the online calendar of events should include the event name, dates, venue, city, state, contact name and phone number and a Web site link if you would like to include one.
2014 Multi State Convention, AL-LA-MS-TN
August 3-5, 2014
Contact: Steve Duke (225) 925-9041
Wisconsin Housing Alliance Manufactured Home Community Basic Training Boot Camp Seminar
August 13, 2014
Contact: Julie Patten (608) 255-3131
2014 Rocky Mountain Home Association/Utah Housing Alliance Annual Conference
August 13-14, 2014
Contact: Tawny Peyton (303) 832-2022