Posts Tagged ‘bennie thompson’

House Financial Services Committee Voice Votes “Yes” to H.R. 1779

May 9th, 2014 Comments off

The Manufactured Housing Institute (MHI) informs the House Financial Services Committee adopted, by voice vote, the Preserving Access to Manufactured Housing Act (H.R. 1779). Although the measure will not be formally approved until a recorded vote is taken, which is expected to occur the week of May 19th, the bill would amend the  Dodd Frank Wall Street Reform and Consumer Protection Act to change the criteria by which home loans are classified “high-cost” while keeping in place  strong consumer protections. The bipartisan bill is sponsored by Representatives Stephen Fincher (R-TN), Bennie Thompson (R-MS) and Gary Miller (R-CA), and has 113 co-sponsors in the House from both sides of the aisle.

The legislation would amend the thresholds by which designated small balance manufactured home loans  are classified as high cost under HOEPA while maintaining  the consumer protections from predatory lending practices under Dodd‐Frank. The measure would clarify that manufactured home salespersons cannot be considered loan originators unless they are paid by a lender or mortgage broker, a clarification without which lenders would likely be unwilling to finance manufactured home loans, making it difficult for low-to-moderate income borrowers to access financing. During the markup a number of representatives spoke in favor of the measure including Financial Services Committee Chairman Jeb Hensarling and ranking member Rep. Maxine Waters (D-CA) who indicated she would support the bill despite lingering concerns.

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Rep. Fincher’s Remarks Regarding HR 1779 in the Congressional Record

May 3rd, 2013 Comments off

Rep. Stephen Fincher (R-Tenn.), Rep. Bennie Thompson (D-Miss.), and Rep. Gary Miller (R-Calif.) sponsored The Preserving Access to Manufactured Housing Act, HR 1779, which will amend the provisions in Dodd-Frank that curtail the availability of manufactured housing loans. In remarks in the Congressional Record of April 26, 2013, Rep. Fincher, while noting the importance of manufactured homes as affordable housing that many families rely on, states the housing turndown resulted in an 80 percent reduction in the production of MH, the closing of 160 plants, and the loss of 200,000 jobs. He says the Consumer Financial Protection Bureau (CFPB) issued guidelines as required under the Dodd-Frank Act that will classify many manufactured home loans as predatory and high-cost under the Home Ownership Equity and Protection Act (HOEPA). He says, “ Simply put the cost of originating and servicing a $250,000 loan and a $25,000 loan are the same in terms of real dollars, but the cost as a percentage of each loan’s size is significantly different. This difference causes the smaller-sized manufactured home loan to potentially exceed the new HOEPA thresholds set by Dodd-Frank and be categorized as a high-cost mortgage and stigmatized as predatory, even though there is nothing predatory about the features of the loan. The liabilities associated with making and obtaining a HOEPA high-cost mortgage will likely prevent lenders from offering loans to low and moderate-income homebuyers, denying families access to necessary credit for new and existing manufactured homes.” Noting the business model for buying manufactured homes differs from a traditional mortgage, he adds the measure would also remove manufactured home retailers and salespersons from being classified as loan originators, providing they do not receive compensation from a lender. As MHProNews reported April 27, the Senate will be considering a similar bill. For the entire entry into the Congressional Record, please click here.

(Photo credit: Champion Homes)

Amendment to High Cost Lending Provision has Bi-partisan Support

April 27th, 2013 Comments off

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.