Posts Tagged ‘Dodd-Frank Act’

Freedom of Speech, Rep. Jim Renacci, Don Glisson, Jr. Triad Financial, and Dick Ernst

August 15th, 2017 Comments off

Featured image credits, CNN Money, Pexels, Rational Standard, MHProNews.

The Central Government should be limited to basic functions. Defending the nation against foreign enemies, preserving order at home, mediating our disputes.” – Milton Freidman.

The widely cherished First Amendment rights – especially to freedom of speech – is a hot topic on many fronts.

I believe that churches have a right of free speech and an opportunity to talk about positions and issues that are relevant to their faith,” said Rep. Jim Renacci, R-Ohio.

We think it’s very, very discriminatory [the MLO rule] to the [MH] industry, and it hurts the consumers,” said Dick Ernst, manufactured home industry finance consultant, to MHLivingNews.


Dick Ernst, consultant and MHI Financial Services Chair.


U.S. Representative Jim Renacci. Credit, Renacci.House.Gov.

While seemingly unrelated, in both cases, freedom of speech is being restricted by the U.S. government, through what some say are problematic applications of federal laws.

The quote by Representative Renacci, per Newsmax, is regarding a GOP bill which would allow churches to be able to back political candidates.

It would be in keeping with a Trump Administration campaign promise to Evangelicals and others faith-based groups that provided his ticket and the GOP with important support last November.

Currently churches, as well as non-profits, are banned from taking a political stance and endorsing a candidate during any elections, while they receive tax-free benefits.

The proposed bill would allow them to once more openly back a political candidate, should a house of worship choose to do so.  Under the plan, faith-community support could occur without the risk of losing their tax-exempt status.

Supporters say this would restore a fundamental right of free speech.

There is plenty of controversy about the bill.

Some opponents suggest that political endorsements by faith-communities could become a way to funnel tax-free funding into election campaigns.

Others simply don’t believe a pastor or church should be able to tell you who to vote for.

On the other side is the fundamentally constitutional question. Shouldn’t that speech be protected under the First Amendment?  Shouldn’t churches have the same rights as, certain supporters say, a labor union?

This bill would seek to correct that problem.

Free Speech and Manufactured Housing

Similar to this faith community scenario, another piece of legislation has restricted the freedom of speech in the manufactured housing industry. The Dodd-Frank Act was passed in reaction to the market crash in 2008.  Democratic lawmakers sought a solution to what they felt was a too-big-to-fail problem. A way to ensure that nothing of the sort ever happened again.

Congressman Frank denied before the meltdown that there was a risk. GOP leaders warned against the looming problems by 2003, as the video below reflects.


Credit, Seeking Alpha.

The Dodd-Frank Act, which was signed into law in 2010, was never intended to have anything to do with manufactured housing – said a letter by Barney Frank to an MHProNews reader, which read in part:

I do not think it is necessary to include manufactured housing as part of our effort to prevent abusive mortgage practices, and I am now working with my staff to see if we can find a way to make a change that would deal with the problem you correctly point out… “

But somehow along the line, that understanding vanished.

Soon after the law was passed, the Consumer Finance Protection Bureau (CFPB) had set up a whole new set of regulations surrounding the financing of manufactured homes.

It’s cutting off a route to home ownership for low- to moderate-income families around the nation — especially in rural areas,” said Ernst in an exclusive to MHLivingNews.

don glisson jr triad fin svcs credit

Don Glisson, Jr., Credit: Triad Financial.

This would be like going to a car dealer to buy a new SUV, and when you ask for help securing a loan, they hand you the phone book and say they can’t help you, so just pick one out yourself,” said Don Glisson, Jr., President and CEO of Triad Financial Services.

The net result forces people to risk violating a law, lose customers looking for information, or causing under-informed buyers to shop for lenders in a market that has a limited number of lenders.

One example MHLivingNews shared is the story of Eric Powell, who planned to purchase his father’s single-section manufactured home. But due to the restrictions placed on lending after the implementation of Dodd-Frank Powell was unable to secure a normal loan, and ended up paying a much higher rate than would have occurred prior to the CFPB’s regulations.

Our compliance costs have quadrupled in the past three years alone,” said Glisson.

The limitations on what retailers can and can’t talk about with the individuals looking to purchase a manufactured home, while different than endorsing a political candidate, is still a violation of free speech, say industry professionals.

In the past, a retailer could pre-qualify a buyer by accessing their credit reports and analyzing their income — just like every Realtor ® in America does — and with that info they could at least determine what lender not to send the application to,” says Glisson.

Ernst said something similar.

Realtors refer customers every day to lenders, but CFPB says they’re exempt, because they’re not being compensated. But our people aren’t either,” says Dick Ernst.

While the two laws were born out of understandable concerns – in each case the impact has been a problematic harm to free speech rights. MHProNews will continue to track and report on such constitutional issues that impact business and politics.  ## (News.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to the Daily Business News for


Report – Rising Debt, Will it Derail Housing Recovery?

August 9th, 2017 Comments off

Featured image credits, MHProNews/Pixabay.

Debt ratios are a key element of what is needed to get qualified for a manufactured home, or other housing loans, as veteran industry professionals know.

So rising revolving debt raises a warning flare.

Credit card debts in the United States have reached an all-time high at $1.021 trillion. That surpasses April 2008’s $1.02 trillion, just before the so-called Great Recession, the Federal Reserve informs MHProNews in a release.

America’s credit card balances have never been higher, but there’s no reason to think they won’t just keep climbing,” says Matt Schulz,’s senior industry analyst, per CNBC.

Combine that with steadily rising interest rates and you have a potentially volatile mix,” said Schulz.

Along with rising credit card debt, total household debts have also reached a new record high, the New York Federal Reserve tells MHProNews.

Total household debts include:

  • credit card debt,
  • housing, auto,
  • and student loans,

reaching $12.73 trillion in total U.S. debts, surpassing the 2008 peak of $12.68 trillion.

According to TransUnion this is likely because lenders have finally given consumers with sub-prime and lower-than-average credit scores access to credit. However, unlike before they are reportedly giving out lower spending limits to minimize the risk.

Approaching a Tipping Point?

We simply can’t keep taking on credit card debt forever without it causing major problems,” said Schulz. “This record probably won’t be a major tipping point, but it likely isn’t too far off.”


Matt Schulz,’s senior industry analyst Credit, CNBC

While the total U.S. debts are even surpassing peak numbers from 2008, the places where consumers are using credit have shifted.

Compared to 2008 borrowers, today there are fewer housing related debts.  That dovetails with the drop in the percentage of home ownership.

This is due in part to stricter lending policies for mortgages and housing loans, put in place by the Consumer Financial Protection Bureau (CFPB) when the Dodd-Frank Act was signed into law.

The New York Federal Reserve notes that Americans are spending more on auto and student loans. Housing debts may be down $1 trillion from the peak in 2008, but auto loans are up $367 billion, and student loans have increased by $672 billion.


Chart – Americans’ total debts based on type of debt. Credits, NY Federal Consumer, Market Watch.

As the chart above reflects, while housing debts may be down compared to a decade ago, they still make up a majority – 67 percent – of total household debts in the United States.

Delinquency Rates on the Rise, Is Trouble Brewing?

The Fed also reported a 7.5 percent rise in the number of credit card accounts that are 90 days or more delinquent.

Credit card companies are reporting much of the same, per Business Insider.

Synchrony Financial, one of the largest providers of store cards (Sears Credit Card, Best Buy Credit Card, etc.), said that the funds used to cover missed payments have increased 30 percent year-on-year, coming to $1.33 billion in the second quarter.

Similarly, American Express reports that loan loss provisions are 26 percent higher than they were last year.


Dave Rosenberg, the chief economist at Gluskin Sheff Credit, CNBC

It’s worrisome that we are starting to see delinquency rates now begin to rise even with the unemployment rate at a cycle low,” said David Rosenberg, the chief economist at Gluskin Sheff, in a note on Tuesday.

This tells me that we are seeing escalating credit strains that have little to do just yet with a weakening economy — evidence that once again, very risky loans were extended this cycle to marginal if not sketchy borrowers.”


Revolving Consumer Credit Chart Credit, Business Insider

Why Should MH Industry Professionals Be Concerned?

As noted previously, debt-to-income ratios are one of the factors manufactured home and other lenders use to determine whether or not someone is approved for a loan.

With rising credit card debts – as well as other loans mentioned like auto and student loans – debt-to-income ratios are going to be higher.  The percentage of approvals are likely to be impacted. So, while the video above explains that while maybe 1/3 of those who are charging are paying them off monthly, that’s not true across the board.

A possible solution for manufactured home professionals could be found by attracting the more qualified buyers.  See the exclusive, under 16 minute video seminar of retailer and community best practices by a manufactured home lender, linked here


Manufactured Home Lender’s Best Practices, click here or on the image above.

The alternative to applying those best practices, could be fewer sales.

This record should serve as a wake-up call to Americans to focus on their credit card debt,” said Schulz. “Even if you feel your debt is manageable right now, know that you could be one unexpected emergency away from real trouble.” # #

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to Daily Business News for MHProNews.






Sunday Morning Recap-Manufactured Housing Industry News Aug. 14-Aug. 21, 2016

August 21st, 2016 Comments off

MHProNews_Sunday morning recap of week's stories postedDailyBusinessNewsMHProNewsWhat’s New in public focused Manufactured

Tiny Houses Owners face Big Legal Trouble?

What’s New in Manufactured Housing Industry Professional News

Financial Services Committee says Dodd-Frank is damaging. YES! Communities redistributes assets. Private enterprise ready to supply modular buildings to flooded LA. MHI, MHARR spar with DOE, as MHI takes on Section 8 Vouchers. Claims in wake of flooding in LA rise to 70,000. $15 mandated minimum wage would cost 9 million jobs. Canadian city mixes manufactured and site-built homes. FEMA’s manufactured housing units likely going to Louisiana. Entry level housing may be coming back. Clinton and Trump’s economic, tax policies divergent. Georgia town halts siting of MH. Southwest Louisiana city nixes MHC plan. Pray’s Homes in Maine has new owner. Mandate requires MHC owners give 90 days pre-closing notice. And much, much more in news, views, and information from across the globe you may peruse regarding off-site home and building construction.

Saturday, Aug. 20

MHI, MHARR, Leaked documents and DOE proposal, plus MHI on New Section 8 Vouchers

Friday, Aug. 19

Financial Services Committee Slams Dodd-Frank as Damaging

Private Enterprise Responds to Assisting Louisiana Flood Victims

Skyline Leads Manufactured Housing Sector Amidst MHCV and Broader Market Tumble

Hedge Fund Investors Bustling over Equity LifeStyle Properties

Manufactured Home Community Bordering Google Transforming into Tech Town

70,000 Claims for Assistance Filed Following Louisiana Flooding

Thursday, Aug.18

$15 Hour Minimum Wage would Cost Nine Million Jobs Nationally

New Manufactured Home Retailer Opening in Kentucky

Drew, Manufactured Housing CompValue and Dow rises – Is Fed Easing to Infinity?

Inventory of Entry-level Homes may finally be Rising

Canadian City Allows Manufactured Homes in Area Zoned Single-family Residential

Insiders Busy Trading Patrick Industries as it Joins S&P SmallCap 600

Wednesday, Aug. 17

FEMA’s Manufactured Home Units Likely Heading to Louisiana

Home Sales Take a Tumble in California

REITs beat S&P 500 with Promising Forecast for the Year

Northern Georgia Town Votes Moratorium on New Manufactured Home Sitings

Calcasieu Parish Planning Committee Nixes MH Community Development

Clinton v Trump – Presidential Nominees and their Tax, Economic Strategies

Tuesday, Aug. 16

San Jose CA set to Vote on Modular Homes for the Homeless

Home Construction Continues its Slow but Steady Incline

Residents of Oregon Manufactured Home Community Consider Long-term Leases

Manufactured Homes can be as Modern as Traditional Houses, says Realtor on FoxNews

Pray’s Manufactured Homes in Maine has New Owner

Mon. Aug. 15

Stock Exchange Winners and Losers under a Clinton Presidency

Logan’s Crossing Manufactured Home Community Announces Annual Scholarships

Skyline Up, Manufactured Housing CompValue (MHCV) Mirrors Dow

Eight Modular Homes for Low-income Families Rising in Illinois

Manufactured Home Community Owner YES! Redistributes Assets

Ordinance Mandates Community Owners Give Nine Months Notice Before Closing

Sunday Morning Recap-Manufactured Housing Industry News Aug 7-Aug.14, 2016 ##

(Photo credit: MHProNews)

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The Dodd-Frank Legacy: Billions Spent, More Designated, Questionable Gains

July 21st, 2016 Comments off

Dodd_Frank___bloombergbusinessweek___credit postedDailyBusinessNewsMHProNewsSix years after passing the Dodd-Frank Act, which was designed to avert another financial crisis, the American Action Forum (AAF) asserts Dodd-Frank has imposed over $36 billion in final rule costs plus 73 million paperwork hours. That is an increase from last year’s $24 billion in final rule costs and 61 million paperwork hours. The costs average out to $112 per person, or $310 per household. Based on agency figures, for purposes of documentation, “It would take 36,950 employees working full-time (2,000 hours annually) to complete a single year of the law’s paperwork,” reports AAF.

Making matters worse, there remain 61 regulations under Dodd-Frank that have yet to be implemented. For an economy still trying to recover from the Great Recession, the law has resulted in a 14.5 percent decline in revolving consumer credit.

On a chart examining costs of imposing Dodd-Frank over the six years since it was first voted in, year one was under $1 billion, but mushroomed to over $4 billion the next year, hitting $8 billion in year three, $6 billion in the fourth year, slipping to about $5 billion the following year, and shooting up to $10.4 billion of economic burdens in the sixth year.


The 533 final rule documents produced by Dodd-Frank have slowly declined since year two, but 61 rulemakings remain to be implemented which could add another $3.3 billion to the cost of Dodd-Frank plus almost a million paperwork hours. The most prominent is the Requirements for Systemically Important Financial Institutions (SIFIs) at $1.5 billion. Proposed last year by the Federal Reserve, its goal is to improve capital standards at the largest, interconnected financial institutions.

The second rule, and second largest, at $1.3 billion in costs, requiring 242,321 paperwork hours, is the Disclosure of Payments by Resource Extraction Issuers. It requires companies “to provide information on payments to foreign governments and corporations on the commercial development of oil, natural gas, or minerals.” Expected to be complete by June 2016, the SEC continues to work on this rule.

The third rule, banning arbitration agreements from particular consumer financial products has created controversy, remains under comment with no date for finalization. Its cost is set at $379.7 million, requiring 500 paperwork hours.

The fourth proposed rule, from the SEC, Security-based Swap Repositories, is estimated to cost some $104 million with over 676,000 paperwork hours notched. The final rule of these five, SEC’s other Swap Repository rule, would mandate new record keeping and reporting requirements on repositories to share specific date with regulators. It would cost an estimated $103.8 million and require 36,120 paperwork hours, involving SEC employees monitoring swap information.

Some of the remaining federal rulemakings related to Dodd-Frank are shown below with their expected completion dates (some are overdue), although many are so complicated it may take years to finalize.

Rule Expected Publication Date
Incentive-Based Compensation Agreements May 2016
Annual Stress Test May 2016
Clearing Requirement May 2016
CFPB’s Arbitration Rule May 2016
Margin Requirements for Swap Entities May 2016
Incentive Compensation May 2016
Resource Extraction Issuers June 2016
Amendments to Regulations X and Z July 2016
Regulatory Capital Rules October 2016
Reporting of Proxy Votes April 2017
End-User Exception April 2017
Stress Tests for Large Investment Firms April 2017
Pay Versus Performance April 2017
Disclosure of Hedging by Officers and Directors May 2017
Covered Broker Dealer Provisions N/A

Finally, one of Dodd-Frank’s main objectives was to prevent the “Too Big to Fail” phenomenon, but as the graph below shows, the five largest commercial banks have enjoyed slow but steady growth in the years since the housing bubble.


However, as MHProNews has learned, it is not the actual growth that matters, but how that growth affects the market’s structure. The top five banks have been responsible for a majority of that market in 13 out of the 23 quarters that Dodd-Frank has been in effect.

While a straight line cannot be drawn that directly connects the six-year-old regulations to increased concentration of the banking industry, the data certainly indicate that Dodd-Frank contributed to what it had intended to prevent at a cost of $36 billion and 73 million paperwork burdensome hours.

AAF concludes: “As time passes, the law becomes more expensive as regulatory agencies like CFPB and FHFA grow with the mission to implement burdensome rules. Meanwhile, small financial services firms continue to struggle as the law restricts the availability of financial products. With dozens of regulations still left to implement, one can only expect the costs to continue to rise.”

As MHProNews knows, Dodd-Frank is directly responsible for impeding the financing of manufactured homes, especially low cost homes. ##

(Graphs and chart credit: American Action Forum;

Dodd-Frank’s breezy banner:bloombergbusinessweek)

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Trump Towers, Clinton Cruises to NY Win

April 20th, 2016 Comments off

trump_towers__ny__post__creditIn the New York primary, with 98.8% of the votes tabulated, according to what politico tells MHProNews, Republican presidential candidate Donald Trump topped opponents Sen. Ted Cruz and Gov. John Kasich, winning 60.5 percent of the votes, 89 of the 95 delegates. Kasich earned 25.1 percent, picking up three delegates, while Cruz received 14.5 percent.

On the Democrat side, Hillary Clinton gained 57.9 percent of the vote, picking up 175 delegates while Sen. Bernie Sanders gained 42.1 percent, giving him 106 delegates.

The three remaining candidates for the Republican nomination intend to alter or end what they see as the job and growth killing policies and practices of the Consumer Financial Protection Bureau, while both Democratic candidates vow to keep or strengthen what they see as the important reforms of the Dodd-Frank Act. ##

(Image credit: New York Post)

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Government Accountability Office Evaluates Dodd-Frank Act Effects

January 5th, 2016 Comments off

government accountability office--wikipediaAccording to a report released by the Government Accountability Office (GAO), as nationalmortgagenews tells MHProNews, the Dodd-Frank Act is expected to have a $100 million impact on the bottom lines of community banks and credit unions in the form of higher expenses and forgone revenues. Regulators continue to verify actual costs.

The full impact of the Dodd-Frank Act remains uncertain because many of its rules have yet to be implemented and insufficient time has passed to evaluate others,” the GAO said.

Regulators told us that it is still too early to assess the full impact of Dodd-Frank Act rulemakings on community banks and credit unions, and while they have heard concerns about the increase in compliance burden, they have not been able to quantify compliance costs.”

Particular rules in Dodd-Frank created an increased compliance burden, especially in smaller lending institutions. Fears about loans that are not qualified mortgages have led to reduced loan activities lest the lender face litigation or the inability to sell those loans to secondary markets.

While the GAO acknowledged there were some initial contractions of credit availability, trade groups see this as the need for more regulatory relief from Congress. Today’s GAO report confirms that Dodd-Frank regulations have increased compliance burdens on credit unions,” Dan Berger, president and chief executive of the National Association of Federal Credit Unions, said.

Meanwhile, the National Credit Union Administration (NCUA), the only federal financial regulator to leave a comment, said it would like to see the differences between banks and credit unions in a more detailed analysis.

The appropriate indicators to use in assessing the effects of the Dodd-Frank Act may be different for very small institutions – where most of the credit unions are clustered – than they are for larger institutions,” said the NCUA’s Executive Director Mark Treichel, in a response letter. “Using a set of indicators better-calibrated to the business models may be more helpful in assessing the effects of the Dodd-Frank Act.”

The GAO, noting that the indicators they developed were reasonable, stated, “While we presented similar indicators for banks and credit unions, comparisons between the two types of institutions may not be appropriate and that certain indicators may be more relevant than others for each type of institution.”

The GAO is required to present an annual report on the effects of the Dodd-Frank Act on community banks and credit unions, the impact on financial market stability, and how federal regulators implemented the rules. ##

Dodd-Frank Reform not Included in Omnibus Appropriations Bill

December 16th, 2015 Comments off

senate banking committee  mbaa  orgThe Manufactured Housing Institute (MHI) informs MHProNews that congressional leaders have announced a $1.1 trillion omnibus appropriations spending bill to keep the government funded through fiscal 2016, but none of the Dodd-Frank Act reforms were included.

Rep. Stephen Fincher (R-TN), the sponsor of the Preserving Access to Manufactured Housing Act in the House, which passed in April, said, “While I am disappointed my bill to improve access to manufactured housing was not included in the omnibus, I will continue to do everything possible to move this bill forward. Congress should constantly fight to give families opportunities – not take them away. My bill is for the millions of Americans who rely on manufactured housing but have been seriously harmed by crushing federal regulations.

Although reforms to the Dodd-Frank Act were not included in the appropriations measure, MHI reminds us of the groundwork laid and the support gained in the first session of the 114th Congress: the stand-alone H. R. 650 passed the House with bipartisan support; Banking Committee Chairman Sen. Richard Shelby (R-AL) included the Senate companion bill, S 682, into the Financial Regulatory Improvement Act (S 1484) that the committee passed in May; and the language was part of the Financial Services and General Government Appropriations Act passed by the Senate Appropriations Committee in July. Also, the language was included by House and Senate negotiators on the list of provisions attached to the omnibus appropriations measure if Dodd-Frank Act reforms were to be included.

The progress made by the manufactured home industry in trying to correct the ills that emanated from the Dodd-Frank Act is in no small way attributable to the bipartisan support received from Senators Donnelly (D-IN), Toomey (R-PA), Cotton (R-AR), and Manchin (E-WV), and Representatives Fincher (R-TN), Sewell (D-AL), Barr (R-KY) and Sinema (D-AZ).

Noting MHI members should congratulate themselves on the progress that has been made, MHI Chairman Tim Williams said,We have just completed the first year of a two-year Congress. In spite of the headwinds from DC-based consumer groups, we have a bipartisan bill and strong support from key leaders in Congress. MHI will continue its strong advocacy efforts into next year and coordinate with its members to effectively press for adoption of these pro-consumer provisions.##

(Photo credit: S. Capitol)

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Data Confirms Dodd-Frank Regulations Impede Manufactured Home Loans

September 28th, 2015 Comments off

MH two story for sale   greg vote getty images creditThe Manufactured Housing Institute (MHI) informs MHProNews that data regarding lending at 7,000 financial institutions and covering nearly 10 million mortgage applications and six million loan originations reveals manufactured home lenders are not making HOEPA (Home Ownership and Equity Protection Act) loans because of the increased liability and burdensome rules of smaller loans, like many MH loans.

Opponents of the Preserving Access to Manufactured Housing Act have been arguing that consumers will lose the HOEPA high cost protection if the legislation passes, when in fact lenders simply are not making loans and are leaving the market and consumers are the ones hurt the most since Dodd-Frank took effect.

A report from the Federal Reserve 2014 Home Mortgage Disclosure Act (HMDA) data describes the decrease in MH loans, saying it is “a precipitous drop in the number of loans originated in 2014 at the HOEPA price threshold, whereas, for 2013 – before the new threshold rules took effect – no such discontinuity was evident. This pattern suggests that HOEPA discouraged lending above the price thresholds.

Many retirees, veterans and working families are unable to obtain financing to purchase manufactured homes; and those who may want to sell their MH see their home values decline because potential buyers cannot find appropriate financing as lenders no longer offer suitable loan products, resulting in home owners selling for cash at a substantially reduced price.

These federal government policies are destroying family net worth and harming the ability of credit-worthy families to achieve the American dream of homeownership,” says MHI.

The Preserving Access to Manufactured Housing Act (H. R. 650), which has already passed the House of Representatives, will restore financing options for MH buyers and provide core consumer protections against predatory lending.

In the Senate, the measure (S. 682) is included in a larger financial regulatory relief package that was passed by the Senate Banking Committee (S. 1484) and the Senate Appropriations Committee.

The MHI urges you to contact your members of Congress and remind them of the importance to their constituents of the Preserving Access to Manufactured Housing Act. Click here to send them an email. ##

(Photo credit: Getty Images/Greg Vote–manufactured home for sale)

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Dr. Gooch of Manufactured Housing Institute calls for Dodd-Frank Adjustment

August 19th, 2015 Comments off

mhi  photo credit  mh under productionWriting in rollcall, Manufactured Housing Institute’s (MHI) Senior Vice President for Government Affairs Dr. Lesli Gooch says while different Congressional committees are evaluating the five-year-old Dodd-Frank Act, people in many rural communities are being harmed rather than protected.

She writes,The Dodd-Frank Act is preventing everyday Americans from accessing the financing they need to purchase quality manufactured homes they can afford in the communities where they live and work. This is occurring because many lenders had to stop making manufactured home loans when the Dodd-Frank Act classified the loans as ‘high-cost.’ Ironically, the loans receive this negative classification because they are small loans, reflecting the fact that manufactured homes are less expensive and more affordable.

While Dodd-Frank understands the need for different rates and cost thresholds for smaller loans, oddly enough, manufactured home (MH) loans are categorized as high-risk loans.

Additionally, manufactured home retailers are classified as loan originators for simply assisting home buyers find potential lenders—something realtors and homebuilders do routinely— which would require licensing and other fees, additionally raising the cost of what is supposed to be affordable housing. There are few MH lenders as it is, which forestalls potential MH homebuyers, steering them to more expensive housing options. In the midst of a national affordable housing crisis, it is unconscionable that federal rules are limiting access to credit for affordable, quality housing,says Dr. Gooch.

Noting that one in every seven homes in rural America is a manufactured home, and other forms of inexpensive housing are rare, Dr. Gooch documents stories of individuals who nominally qualify for a loan, but are denied MH loans because of misguided federal regulatory policies. Neither a new program, nor more funding, nor housing assistance is needed to solve the problem. H. R. 650, the Preserving Access to Manufactured Housing Act would restore availability of MH financing and protect against predatory lending. This bill passed the House, and the companion bill, S. 682, awaits passage in the Senate.

MHProNews understands adjustments to significant legislation are not terribly unusual. If H. R. 650/S.682 become law, the economy will receive a substantial shot-in-the-arm from manufactured home buyers and home builders.

Dr. Gooch concludes, “After five years of the Dodd-Frank Act, it is important to remain mindful that there are families being denied their American dream because of an unintended consequence. With a simple adjustment, financing for the largest form of unsubsidized, affordable housing in the country will be restored.##

(Photo credit: Manufactured Housing Institute–MH under construction.

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CFPB Postpones Implementation of Know Before You Owe

July 8th, 2015 Comments off

mortgage app  housingwire creditSuggesting the delay may be beneficial to both lenders and consumers, the Consumer Financial Protection Bureau (CFPB) has delayed for a second time the launch of the integrated disclosures for residential mortgage loans under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). It is also called the Know Before You Owe rule.

According to suprajd, members of Congress from both sides of the aisle suggested the CFPB postpone the deadline to give lenders additional time to put in motion the necessary changes for the new disclosure form and to test compliance systems.

While the postponement may harm consumers who will not be able to take advantage of the new rules as soon, the CFPB states in the long run the transition will smooth the path for borrowers by giving lenders a longer time to adjust.

The TILA-RESPA Disclosure rule resulted from the Dodd-Frank Act to give borrowers transparency regarding main features of their mortgages. Although the new launch date is Oct. 3 of this year, the CFPB may offer a grace period to lenders which will allow time for CFPB examiners to implement a compliance review of the new rule into their audit procedures. MHProNews understands TILA and RESPA both offer the opportunity for consumers to sue lenders for failing to comply with the new disclosure rule. ##

(Image credit: housingwire)

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