Posts Tagged ‘bob corker’

Congressional Testimony Negates Sensationalized Charges of Predatory Lending

June 11th, 2016 Comments off

IDontThinkThereWasEverMuchHighCostLendingInTheManufacturedHousingMarket-stillcreditCSPAN2--RichardCordrayCFPBdirector-Posted-MHLivingNews-com-With all the negative publicity swirling around alleged predatory lending for purchasers of manufactured homes by the Seattle Times, National Public Radio and BuzzFeed within the last year, it’s time the media paid attention to congressional testimony that refutes these notions, according to L. A. “Tony” Kovach, publisher of MHLivingNews and MHProNews.

The Dodd-Frank Act that was supposed to protect people of modest means has had the opposite effect, hindering buyers, sellers and lenders in the affordable housing market.

Director of the Consumer Financial Protection Bureau (CFPB) Richard Cordray explained to a Senate committee why, percentage-wise, it is more expensive to originate and service conventional housing and manufactured home loans under $100,000, its just business math. He also said “there never was much high-cost lending” on MH, thus refuting news stories that accuse the industry of predatory lending.

During a hearing last spring Sen. Bob Corker (R-TN) tells Director Cordray that some of the regulations prevent homeownership, and in some cases it costs more to rent than to buy a home. Cordray responds, “this isn’t optimal for anyone.” Sen. Joe Donnelly (D-IN) spoke extensively about CFPB’s regulations that hamper MH sales.

A separate video linked in the MHLivingNews story documents how Don Glisson Jr., an MH lender who is chairman and CEO of Triad Financial Services, sheding light on this same topic.  Glisson explains on camera that without federal subsidies and with no taxpayer risk, chattel loans are made at the lender’s risk—without a secondary market, the lender has to hold the loan. If other lenders could charge less and still make a profit, they would quickly move in. That they don’t indicates MH lending is some fat profit and is clearly not predatory.

So both industry professionals and Cordray agree that MH lending isn’t predatory.  Then why has some in the mainstream media tried to paint a different picture?

A report from a 2014 Government Accountability Office (GAO) reveals that even with two-thirds of manufactured home loans at slightly higher rates, the payments on MH are often significantly lower than rent or other housing options.

Kovach says: “With the affordable housing crisis growing, there is an urgent need for fresh, accurate reporting that shines a light on the unfortunate consequences of federal rules that were well intended, but instead hurt the very people they were meant to help.”

Despite these barriers to affordable housing, MHProNews understands the sale of new manufactured homes is up 20 percent over last year’s total. Imagine how production might be if the barriers came down.

For additional reports and links to this information, please click. ##

(Photo credit: MHLivingNews Inside MH video, still from CSPAN2, graphic text, credit – MHLivingNews.)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Support for Governmental Backstop for Mortgage Financing Remains

September 18th, 2013 Comments off

A “future-of-housing” forum sponsored by the National Association of Home Builders (NAHB) in Washington, D. C., with housing industry experts and Senators Bob Corker (R-TN), Jon Tester (D-MT) and Johnny Isakson (R-GA) indicated most participants agree the private sector should play a greater role in mortgage financing, but with some level of government support to ensure stability and liquidity. Peter Wallison of the American Enterprise Institute says lowering the conforming limits of the government sponsored enterprises (GSEs) will make a path for the private sector to take that business. “If you simply made those changes and authorized the withdrawal of the GSEs, you would find we would gradually move to a completely private system, which is where I think we should be going,” he states. Others say during a tough time for the housing industry private credit would simply disappear, and that the Federal Housing Authority (FHA) saved the day during the recent crisis. Sens. Corker and Tester are among ten bipartisan sponsors of the Housing Finance Reform and Taxpayer Protection Act (S. 1217), which provides a federal backstop to mortgage lending. Isakson says every provision in the Tax Code must be thoroughly examined to determine if it is viable in the long term. Eric Belsky, managing director of the Joint Center for Housing Studies at Harvard University says household formation is particularly slow, as many over 30 children remain with their parents due to economic necessity. NAHB Chief Economist David Crowe says the housing market is about half-way back, as credit remains tight and buildable lots are scarce. On the topic of tax reform, several housing experts agree the mortgage interest deduction plays an important role in shaping housing demand. NAHB Economist Robert Dietz says, “The nonpartisan Tax Foundation found that if we repealed the mortgage interest deduction and lowered marginal tax rates then GDP would decline by $100 billion annually,” plus it would cause home values to decline. AS MHProNews learned, he added, “Considering it only takes a 6 percent drop in home values to wipe out $1 trillion in household wealth, the economic consequences could be significant.”

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Housing Issues on Tap for D.C. Discussion

September 10th, 2013 Comments off

The National Association of Home Builders (NAHB) is sponsoring a forum on housing, Building a Better Future: America’s Housing at a Crossroads, Tue., Sept. 17, 2013 at the Newseum in Washington, D. C. Hosted by CQ Roll Call, a provider of Congressional news and legislative tracking, the free event will bring together members of Congress, their staff, industry and association leaders and other stakeholders in the housing market. Topics on the agenda include the outlook for housing demand, GSE Reform, and how tax reform might affect homeownership and the economy. U.S. Senators Jon Tester (D-Mont.), Bob Corker (R-Tenn.) and Johnny Isakson (R-Ga.) are on the schedule as keynote speakers. MHProNews has been informed panel sessions will feature governmental, academic, and business experts.

(Photo credit: comstockpremium)

Reid Opposes GSE reforms, clouding future of effort

August 27th, 2013 Comments off

harry-reid-official-photo-credit-wiki-commons-posted-daily-business-news-mhpro-news-com-The Senate Banking Committee is developing housing finance reform legislation introduced in the Senate (S. 1217) by Bob Corker (R-TN) and Mark Warner (D-VA). Senate Majority Leader Harry Reid (D-NV) has indicated he opposes the plan abolishing the GSEs, asserting it would become too difficult for many to purchase a home. House legislation’s future is also unclear. The PATH Act developed by House Financial Services Committee Chairman Jeb Hensarling (R-TX) and supported by the Manufactured Housing Institute (MHI) and Texas Manufactured Housing Association (TMHA), contains revisions to Dodd-Frank to eliminate Fannie Mae and Freddie Mac and replace them with a new securitization utility without any governmental backstop, unlike unlike the Corker-Warner bill. Sources at MHI, TMHA and others will keep MHProNews informed on such important and closely monitored efforts. ##

(Photo Credit, Harry Reid: WikiCommons)

Mortgage Finance Reform Tops Congressional Agenda

July 8th, 2013 Comments off

House Republicans, led by Rep. Jeb Hensarling of Tex., Chairman of the House Financial Services Committee, are getting set to introduce mortgage finance reform legislation that will totally eliminate government sponsored enterprises (GSEs) and replace them with a private system. Knowing all the features are not likely to pass, the goal of the representatives who are assisting in drafting the measure is to mark a point from which to negotiate. The bipartisan bill from the Senate, introduced by Bob Corker (R-Tenn.) and Mark Warner (D-Vir.), while cutting out Fannie Mae and Freddie Mac, would still provide a definite role for the government in the mortgage market, and has already received some industry support. If Hensarling is too unyielding, he’s likely to lose support of the GOP representatives who have ties to the housing industry, according to what nationalmortgagenews tells MHProNews. If too moderate, he may lose the more conservative members who are dead set on eliminating the GSEs. Says Brandon Barford, a vice president at ACG Analytics, “Negotiating with the Senate and the White House and other stakeholders, I think he’s going to have difficulty if his bill is dramatically different than Corker-Warner, if there’s little to no government role. I also question whether he (Hensarling) has enough votes to get it out of committee. He’s not going to get any Democrats, and he has a very slim margin to lose Republicans.”

(Image credit: Facebook)

Proposal would Replace Government-Sponsored Enterprises Fannie and Freddie

June 20th, 2013 Comments off

A plan to replace Fannie Mae and Freddie Mac with a Market Access Fund (MAF) has been proposed by two U. S. senators as well as by several analytic firms and think tanks. Senators Bob Corker (R-Tenn.) and Mark Warner (D-Vir.) say their reform bill would create the MAF from basis points added to mortgage-backed securities (MBS). A joint proposal by Moody Analytics, Urban Institute and Milken Institute states a six basis point MBS fee would eventually provide $5 billion in annual revenue, sufficient for a stable MAF funding source. Since it will be difficult to back affordable housing initiatives that have been the province of the GSEs, a percentage of the MBS fees would establish a National Housing Trust Fund to maintain and create sufficient inventory of adequate rental housing for extremely low-income families. In addition, as MHProNews has learned from nationalmortgagenews, the fees would fund research to make certain all sectors are being served by the new arrangement.

(Image credit: ehow)

Galante finally Approved to Lead FHA

January 2nd, 2013 Comments off

NationalMortgageNews reports over a year after the Senate Banking Committee voted to send Carol Galante’s confirmation to the full Senate as Commissioner of the Federal Housing Administration (FHA), the Senate voted 69-24 to confirm her appointment Sunday during a special session dealing with the fiscal cliff controversy. As MHProNews reported Dec. 14, 2011, Sen. Jim Demint, (R-SC), leveling charges at Ms. Galante of being short-sighted at a Senate Banking Committee hearing on her nomination, said, “We need people with a sense of urgency (italics added) about the need to turn things around and reduce our debt and avoid future bailouts.” Sen. Bob Corker (R-Tenn.), noting more needs to be done to repair FHA’s financially challenged single-family program, says as the confirmed commissioner Galante can now assemble her own staff and take more aggressive steps. The acting head of FHA since July 2011, she will also serve as a HUD assistant secretary.

(Photo credit: HUD GOV–Carol Galante)