Posts Tagged ‘Consumer Financial Protection Bureau (CFPB)’

NAHB’s David Crowe asserts tight credit harming new housing sales

October 15th, 2014 Comments off

national-association-homebuilders-chief-economist-david-crowe-credit=nahb-posted-daily-business-news-mhpronews-comA recent survey by the National Association of Home Builders (NAHB) indicates that mortgage lending standards are so tight, it remains challenging for potential buyers to invest in new homes and real estate.

After years of struggle due to the 2008 financial crisis, housing has seen some positive growth throughout the year, says NAHB Chief Economist Davie Crowe, learned MHProNews.

RIS Media  reports that when questioned about the loss of sales due to unqualified buyers, eighty-three percent [of builders] answered ‘yes’ and of these, the average share of sales lost was 9.7 percent. NHAB estimates this 9.7 percent translates to 18,700 new-home sales lost because buyers were unable to qualify for mortgage.

While the survey focused on builders, many other groups are affected by the tight lending situation brought on by Consumer Financial Protection Bureau (CFPB) imposed standards. Manufactured housing professionals should not feel alone, as auto lenders, leasing and other industries are also being impacted. ##

(David Crowe photo credit: NAHB)

(Article submitted by Lucine Colignon to Daily Business News – MHProNews)

CFPB Plans Regulations of Auto Lenders, Leasing Contracts too

October 9th, 2014 Comments off

credit=automotive-news-mazda-dealer-posted-daily-business-news-mhpronews-com-In a move that should be monitored by Manufactured Housing (MH) Industry professionals; the Consumer Financial Protection Bureau (CFPB) has published in the Federal Register a proposed rule that could go into effect before the end of 2014, Jim Henry at Automotive News (AN) tells MHProNews.

The cost of compliance obviously is going to be a big issue,” Ballard Spahr law firm attorney John Culhane Jr. said. In September, the CFPB proposed a rule that would regulate nonbanks originating 10,000 or more auto loans and leases a year.

The proposed regulation would include automakers’ captive finance arms and independent lenders, Henry reports.

Mission Creep?

The larger-participants rule could be used to give the CFPB authority to act on cases of alleged “unfair, deceptive or abusive acts or practices…”

MH industry sources speculate this move by the CFPB could lead to outreach efforts between auto lenders, MH Industry finance firms, associations and others seeking to collaborate for regulatory relief. ##

(Image Credit: Automotive News)

CFPB related article:


Senate Committee Sidetracked by CFPB Head Nomination

December 8th, 2011 Comments off

NationalMortgageNews reports a Senate Banking Committee hearing to discuss the work regulators are doing at six different agencies to implement Dodd-Frank became embroiled in an exchange about a seventh agency not in the room. Legislators sparred over the impending vote of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB). Republicans want structural changes made to the agency, while Democrats blame Republicans for refusing to allow a vote on his nomination. Sen. Richard Shelby, (R-Ala.), asked Deputy Treasury Secretary Neal Wolin if the administration is seriously interested in discussing the issue. Wolin replied, “Well, I think, Senator, what we’re very interested in is the Senate considering Richard Cordray.” Sen. Bob Corker, (R-Tenn.), leveled a charge of political game-playing at Wolin. President Obama said, during a campaign stop in Kansas, “Everyday we go without a consumer watchdog n place is another day what a student, or a senior citizen, or member of our Armed Forces could be tricked into a loan they can’t afford—something that happens all the time.”
(Graphic credit: CFPB)

MH Field Hearing Yields HUD, MHI, Industry, and Resident Viewpoints

November 30th, 2011 Comments off

At the “State of the Manufactured Housing Industry” Congressional Field Hearings in Danville, Virginia, Nov. 29, members of the House Congressional Subcommittee on Housing, Insurance, and Community Opportunity heard from a variety of persons in the MH arena.

Henry Czauski, Acting Deputy Administrator for the Office of Manufactured Housing programs, noted the affordability aspect of Manufactured Housing (MH) to moderate and low-income families. He stressed the importance of federal regulations in ensuring MH is built to standards that enhance the safety and security of the structure, and the involvement of the Manufactured Housing Consensus Committee (MHCC) in that process. Noting that the “certification” fees HUD collects on each MH section has declined with the decrease in sales, he said Congress has appropriated funding to supplement these fees in three of the last four years.

Kevin Clayton, president and CEO of Clayton Homes, and secretary of the Executive Committee for the Manufactured Housing Institute (MHI), testified that 72 percent of all new homes sold in 2010 under $125,000 were manufactured homes. While noting that the industry as a whole provided 75,000 full-time jobs in 2010, 200,000 jobs have been lost as the industry has declined. Clayton said provisions of the Dodd-Frank Act will disparately impact manufactured home lending, that the SAFE ACT, now under the auspices of the Consumer Financial Protection Bureau (CFPB) needs clarification in its implementation, and that HUD’s outdated building codes and guidance on preemption have left the industry vulnerable to state and local regulators.

Tyler Craddock, of the Virginia Manufactured and Modular Housing Association, said manufactured housing comprises 5.6% of all the housing in Virginia, but in many rural areas where construction labor is not readily available, 15-20% of the housing is MH. Craddock said factory-built housing sales are moving more in the direction of modular in his area, and blamed the lack of affordable financing for consumers wanting to purchase manufactured housing.

Adam Rust, research director of the Community Reinvestment Association of North Carolina, noting the difficulty in obtaining financing for MH, said a person applying for a manufactured home loan is three times more likely to be turned down than someone applying for a site-built home loan. Rust said GSEs could be restructured to make financing more available to persons buying manufactured homes, because interest rates are too high and consumer protection is too low. He also suggested making funds available for community groups to buy MHCs.

Stanley Rush, of MHD Empire Service Corporation, says SAFE Act implementation is hurting MH salespeople who are only helping consumers with paperwork, not with lending decisions. With so many sources of lending drying up because regulators are encouraging lenders to stay away from MH loans, the industry is being further crippled, Rush stated.

J. Scott Yates, president of Yates Homes of Pittsylvania County in Virginia, testified his company has dropped to five employees from 19, and from selling 180 homes a year to only 30. Yates said he is now selling modular homes to keep his company alive because the codes are the same for site-built homes and financing is easier to obtain. He said the big loser is the American consumer of more modest means.

MH Virginia resident Carla Burr said she could only afford her $113,000 home because she had sold her condo and had the cash. Her other option was to finance the home at 10 percent, despite a good credit rating, a figure she says prevents many people from being able to afford MH. She said not only does the government need to promote manufactured housing through the myriad of programs already existing, but it also needs to protect community residents who sometimes are at the mercy of unscrupulous community owners.

MHARR provided written testimony for the committee.

(Editor’s Note: The full written portion of the statements from each of the above are available for your download and reading here below).

Mr. Henry S. Czauski, Acting Deputy Administrator for Manufactured Housing Program, U.S. Department of Housing and Urban Development

Mr. Kevin Clayton, President and Chief Executive Officer, Clayton Homes, Secretary for the Executive Committee of the Manufactured Housing Institute (MHI)

Mr. Tyler Craddock, Executive Director, Virginia Manufactured and Modular Housing Association

Mr. Stan Rush, Account Representative, Haylor, Freyer and Coon, Inc.

Mr. J. Scott Yates, President, Yates Homes

Mr. Adam Rust, Research Director, Community Reinvestment Association of North Carolina

Ms. Carla Burr, Manufactured Housing Resident

Written Testimony submitted by Danny Ghorbani for the Manufactured Housing Association for Regulatory Reform (MHARR)

(Graphic credit: Wikipedia  U.S. House of Representatives)

Warren Supports Occupy Wall Street

October 26th, 2011 Comments off

Redstate updates a report MHProNews previously covered on Elizabeth Warren, President Obama’s force behind the Consumer Financial Protection Bureau (CFPB) and current candidate for the U.S. Senate from Massachusetts. Commenting in an article in The Daily Beast about the Occupy Wall Street movement that has spread across the country and four continents, Warren says, “I created much of the intellectual foundation for what they do. I support what they do.” She is not, however, a soak-the-rich Democrat who sees only the excesses of Wall Street. Raised in lower middle-class surroundings in Oklahoma, she is now a commercial law professor at Harvard University. Many of her studies have focused on debt and trying to determine what causes families to go bankrupt. Warren was a Republican until the 1990’s: “I was a Republican because I thought those were the people who best supported markets. I don’t think that is true anymore.” The report cited articles from different publications that depict sexual assault, drug use, anti-Semitic speeches, littering, graffiti, and incitements to violence at Occupy Wall Street protests across the country. In New York, according to Politicology, violent crime has increased because more police have been called away from the hot spots to patrol the protest area. Redstate rhetorically asks, is this what Warren supports?

(Photo credit: Wikimedia)

CFPB tests new disclosure forms rules

September 14th, 2011 Comments off

Origination News reports the Consumer Financial Protection Bureau (CFPB) is continuing to test the new mortgage disclosure forms, this time with actual consumers in Springfield, MA. The agency wants to make certain that consumers understand the differences between two distinct but competing adjustable rate mortgages (ARMs): One that adjusts every three years and a 7/1 ARM. Patricia McCoy, CFPB assistant director for mortgage markets, in requesting public input, suggests consumers think of what additional information they may need in comparing the two forms, and what questions they might ask. With the comment period scheduled to end Sept. 19, McCoy says, ““We want to make sure the disclosure actually helps consumers understand the features of the competing loan products — from the overall loan amount to estimates of taxes and insurance costs.” In a related story, CFPB driver and interim head Elizabeth Warren is planning a run for the U.S. Senate seat now held by Scott Brown, R-Mass.

(Graphic credit CFPB)

CFPB Opens its Doors to Cheers and Complaints

July 21st, 2011 Comments off

From industry sources reporting to and Housing Wire, as the Consumer Financial Protection Bureau (CFPB) opened for business July 21 with a budget estimated at $550 million, the debate in and out of Congress continues to rage over the authority one person will have over all mortgages and other consumer financial products. 44 Republican Senators have threatened to block confirmation of the incoming director, saying they want a commission to replace the director. Another issue is the CFPB will not be accountable to Congress for its funding because it is under the jurisdiction of the Federal Reserve. Some analysts say the mortgage industry did not police itself well enough, and brought on the housing industry crisis. As the centerpiece of the Dodd-Frank Act, the CFPB is designed to protect consumers. But CFPB opponents ask, will its regulatory functions weigh down business? Some in the manufactured housing industry say it could cost our industry 20,000 shipments and 20,000 jobs. will keep you apprised of the path the CFPB takes.


CFPB’s Top Cop Picked to Lead Agency

July 18th, 2011 Comments off

Business Insider reports that President Obama has picked former Ohio Attorney General (AG) Richard Cordray to head the Consumer Financial Protection Bureau (CFPB). He became AG in Ohio in 2009 when the previous officeholder had to step down, and garnered some national attention when he went after big banks for sloppy mortgage procedures. After losing his bid for AG in the Republican landslide last year, he was chosen by Elizabeth Warren to be head of enforcement at the CFPB. In response to Republican leaders call for a commission to head the agency instead of one person, Cordary responded that the agency needs to be nimble enough to move quickly without each decision being made by committee, yet maintaining transparency. After his initial appointment to CFPB, he said, “”There’s a belief here that Wall Street is a fixed casino and it’s back in business, and we’re left holding the bag. It’s important for us to show we’ll go after a company that does wrong.” The Senate must confirm his appointment to the five year position.  Sources had told MHMSM late last week that the field to lead CFPB had narrowed to Cordray, Jennifer Granholm – former Governor of Michigan and part of the Obama transition team and Raj Date.  Date was Chairman and Executive Director of the Cambridge Winter Center from its founding through September, 2010, before joining the U.S. Department of the Treasury.

(photo courtesy The Daily Beast)


CFPB Preparing for July 21 Start

July 13th, 2011 Comments off

HousingWire reports the Consumer Financial Protection Bureau (CFPB) will consult with small businesses the next few months to discuss mortgage disclosure forms and review rules under the Truth-in-Lending Act (TILA) that deal with mortgages.  The bureau has 100 employees ready for the July 21 launch of the CFPB.  The agency has until January 2013 to finalize and digest the new lending and consumer rules in its jurisdiction.

(Stock Image)

MHI States Need for Dodd-Frank Change

July 12th, 2011 Comments off today received from Thayer Long, Executive Director of the Manufactured Housing Institute (MHI), that association’s position paper on a critical Industry subject.   In noting the impact of the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) on manufactured housing, MHI says the unintended consequences of the bill are harmful to the manufactured housing industry.  Manufactured housing (MH) loans tend to be smaller than conventional mortgages, and because current and proposed transactional costs are fixed regardless of the size of the loan, these costs are a larger percentage of the loan, which may put it out of the reach of the consumer.  The new regulation will also make it difficult for MH home owners to sell their homes if financing is needed.  The statement further says 50 percent of all loans made on manufactured homes in manufactured home communities are under $25,000.  As with conventional housing loans, those posing a credit challenge will have a tougher time finder financing.  The issues that need attention include clarification and consistency regarding mortgage standards and mortgage originators; exemption of MH from appraisal standards and exclusion of MH loans from residential loans; and stronger exemptions for MH retailers from Consumer Financial Protection Bureau (CFPB) oversight.  Click on Dodd-Frank Act and Manufactured Housing to read the full statement.