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NAHB Commentary On Dodd-Frank Rollback

February 9th, 2017 Comments off
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Trump signs the Dodd-Frank Executive Order. Credits: NBC News, NAHB.

The National Association of Home Builders (NAHB) has expressed support of President Donald Trump’s actions to roll back the Dodd-Frank Act.

As Daily Business News readers are aware, President Trump signed an Executive Order to begin the rollback process that will direct the Treasury secretary to review the 2010 Dodd-Frank financial oversight law, which reshaped financial regulation after the 2008-09 financial crisis.

Dodd-Frank is a disaster, said Trump, during a meeting last week with small business owners, including NFIB President and CEO Juanita Duggan

We’re going to do a big number on Dodd-Frank.

NAHB commends President Trump on his announcement to reform regulations in the Dodd-Frank Act that have hampered our nation’s housing recovery and slowed economic growth,” said NAHB Chairman Granger MacDonald.

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Granger MacDonald. Credit: Builder Magazine.

We support common-sense regulations to protect American consumers and preserve our nation’s banking system, however, the tight lending conditions created by Dodd-Frank are preventing too many home builders from receiving loans and restricting mortgage financing to credit-worthy borrowers.

The Daily Business News, MHProNews and MHLivingNews have covered Dodd-Frank and its impact on the manufactured housing industry extensively, including the Consumer Financial Protection Bureau (CFPB). Their impact on affordable housing has, in essence, created a “Renter’s Nation”.

Don Glisson, CEO of Triad Financial Services, has a very intimate understanding of the impacts both agencies have on the industry.

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Credit: MHLivingNews. For the full article, click here or on the photo above.

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Don Glisson. Credit: Triad Financial.

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

We are the answer to the country’s affordable housing issues, but we don’t get fair treatment at the federal level. There are no MH dwellers inside the Beltway, so we must not be a good housing choice in their eyes. Government is taking sides and it’s harming the very middle-class they profess to want to help.

MacDonald has a similar line of thinking.

Regulatory relief for mortgage lenders and small and mid-sized banks that serve their communities is critical for the nation’s housing recovery,” said MacDonald.

NAHB has been calling for reduced regulatory burden on real estate lending since Dodd-Frank’s passage in 2010.” ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Manufactured Housing Industry Gains in Easing Lending Restrictions

August 9th, 2013 Comments off

In its continuing attempts to amend rules that inhibit lending to the manufactured housing market, the Manufactured Housing Institute (MHI) says the Consumer Financial Protection Bureau (CFPB) released additional rules that exempt loans on existing manufactured homes (excluding real estate) from Dodd-Frank appraisal requirements. There is already an existing rule that exempts loans on new manufactured homes from appraisal requirements, as MHProNews has learned. In addition, the MHI newsletter reports a CFPB modification of loan originator compensation rules now exempts from points and fees calculations the sales price of a manufactured home, as well as any commission a manufactured home retailer pays to its sales persons.

(Image credit: andyenstallblog)

Exemption for certain Manufactured Housing Appraisals on Tap

July 16th, 2013 Comments off

On July 10th, the Consumer Financial Protection Bureau (CFPB), in cooperation with five other federal agencies, issued joint proposed regulations providing exemptions from appraisal requirements for certain higher-priced mortgage loans (HPMLs), which would include manufactured home loans. Imposed by the Dodd-Frank Act, mortgage loans are considered to be higher-priced if they are secured by the borrower’s home and have an APR (average prime rate) more than 1.5 percent above the average prime offer rate. The proposed rules released by the CFPB exempt from appraisal requirements transactions secured by existing manufactured homes and not land, which covers new manufactured homes as well as pre HUD Code homes. This exemption marks a breakthrough for the manufactured housing industry and consumers. Additionally, the proposed rule change exempts loans of $25,000 or less, without which creditors providing non-QM loans for the purchase of manufactured homes would have been required to perform a complete Uniform Standards of Professional Appraisal Practices (USPAP)-compliant appraisal. That would add costs to the consumer and a burden to the lender, as MHProNews has learned from the Manufactured Housing Institute (MHI) newsletter. All six federal agencies are seeking comments on the proposal which closes Sept. 9, 2013. The rule is scheduled to take effect Jan. 2014. For the full report, please click here.

(Image credit: andyenstallblog)

CFPB Director takes Questions

June 25th, 2013 Comments off

Consumer Financial Protection Bureau Director Richard Cordray, in a speech followed by a Q and A before the Exchequer Club, said more commotion than necessary is being made about the qualified mortgage (QM) rule. He says lenders will continue lending as they have in the past, even outside the rule, according to nationalmortgagenews. For a lender “to not make those mortgages and leave that money on the table and leave people un-served because of some vague fear that they can’t quite articulate; that doesn’t sound to me like the kind of good decision-making that lenders have made for years,” said Cordray. He agrees with the chief economist at Moody’s Analytics, Mark Zandi, who says $20 billion of the $1.25 trillion mortgage market will fall outside the QM rule, which amounts to two percent of the total. Noting the agency is trying to be flexible in its overall approach, when questioned about the extensive mortgage data the CFPB is currently gathering, Cordray said the information collected will help a future director make more solid policy decisions. Speaking of his own battle with Republicans over his confirmation, as MHProNews has learned, he does not profess to know what was in the mind of the Dodd-Frank Act congressional creators, but feels the structure allows the ability to reshape policy as needed.

(Photo credit: ABCNews–CFPB Director Richard Cordray)

Affordable Housing Shortage is Critical; Dodd-Frank is “Deadening”

June 13th, 2013 Comments off

According to the president of the Federal Home Land Bank (FHLB) of New York, Alfred DelliBovi says the need for affordable housing is becoming critical, especially as the availability of federal funds for housing decreases. As MHProNews has learned from nationalmortgagenews, each of the banks’ 11 districts has an Affordable Housing Program which is required to set aside ten percent of its private earnings to support housing for low income residents. He says given the state of the sluggish economy, it’s difficult for those of modest means to save enough for a down payment, and as former deputy director of the Department of Housing and Urban Development, he knows the importance of assistance. Calling the Dodd-Frank Act “deadening,” “poorly constructed” and “costly,” he says legislators pass laws telling someone else to enforce the rulings without understanding the root cause or knowing the full impact of the legislation. “Reducing risk sounds like a great idea, but if you do it to the point where business is impossible, that’s crazy,” he adds.

(Image credit: bloombergbusinessweek)

Threat to Industry Needs to be Addressed

June 11th, 2013 Comments off

In an appeal from the Manufactured Housing Institute, MHI Chairman Nathan Smith says unless the Preserving Access to Manufactured Housing Act (H.R. 1779) becomes law, low-to-moderate income prospective buyers will face a tougher time trying to purchase a manufactured home, due to Dodd-Frank Act provisions. The bill will alter the definition of “high-cost” loans as they pertain to small-sized manufactured home loans, and re-define loan originators so as to exclude manufactured home salespeople. Noting the broad support needed from both parties, Smith says, “It is absolutely critical that the members of the manufactured housing industry and its allies clearly demonstrate that this corrective legislation is needed and transcends any partisan politics.” MHProNews has learned similar legislation will be introduced in the Senate shortly, so MHI members and associates need to re-double their efforts in contacting their representatives. Click here for full story.

(Photo credit: mycn2–Nathan Smith, Chairman of MHI))

Manufactured Housing Institute Issues Action Alert

May 3rd, 2013 Comments off

The Manufactured Housing Institute (MHI) has sent an urgent action alert to members of the manufactured housing industry to contact their Congressional representative and ask for their co-sponsorship and support of H.R. 1779, the Preserving Access to Manufactured Housing Act. The bi-partisan measure would amend provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, scheduled to take effect January, 2014, that will limit the availability of credit for buyers of manufactured homes. MHProNews has posted the alert from MHI and a sample fax to send to your Congressional representative. For this and other supportive information, please click here.

(Image credit: Manufactured Housing Institute)

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)

HUD Reviewing Qualified Mortgage Rule for FHA

April 29th, 2013 Comments off

Reviewing the qualified mortgage (QM) rule handed down by the Consumer Financial Protection Bureau (CFPB), the Dept. of Housing and Urban Development (HUD), in trying to broaden access to Federal Housing Administration (FHA)-insured loans, may modify the safe harbor provision, as nationalmortgagenews informs MHProNews. Any interest rate that exceeds the average prime rate plus 150 basis points falls outside the QM safe harbor line, which opens the door for possible litigation against the lender if the borrower defaults. FHA has announced it will issue its own QM rule as allowed under Dodd-Frank.

(Image credit: Federal Housing Administration)

Both Parties in Congress Favor Revising Dodd-Frank

April 24th, 2013 Comments off

MHProNews has learned from the Wall Street Journal there is rare bipartisan support in Congress to roll back a provision in the Dodd-Frank Act that could produce a decline in manufactured home lending, thereby hurting builders, lenders, and owners. A part of Dodd-Frank sets a threshold for interest rates beyond which loans are considered “high cost” by the Consumer Financial Protection Bureau (CFPB) and do not offer legal protections. Many of the loans for manufactured homes fall into this category because they carry interest rates above ten percent, and since purchasers of manufactured homes generally have lower incomes, they are more likely to default. In addition, manufactured homes may lose value over time in some scenarios, and if the home goes into foreclosure the lender will recover less money. Tim Williams, CEO of 21st Mortgage, the largest lender to MH buyers, says a third of his loans from 2010 to 2011 would have landed beyond the CFPB’s threshold. He says the bureau’s restrictions will harm those of modest means in rural areas and will also make it more difficult for individuals to sell their homes. House and Senate lawmakers are working on legislation to make fewer loans “high cost.” Sen. Sherrod Brown (D-OH), noting manufactured homes represent a different consumer base than buyers of traditional homes, says the measure he will introduce would “bring regulations for manufactured housing in line with their place in the market.” Joe Stegmeyer, CEO of Cavco Homes, Inc., the second largest producer of manufactured and modular homes, noting companies are already having tough time, says, “If we see that financing dwindle…it certainly will mean closure of a number of plants.”

(Image credit: bloombergbusinessweek)