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Posts Tagged ‘Financial Services Subcommittee’

Congressman Criticizes Cordray

September 10th, 2013 Comments off

Rep. Patrick McHenry, (R-N.C.) rapped Consumer Financial Protection Bureau (CFPB) Director Richard Cordray for suggesting credit unions make mortgages to borrowers they see as a reasonable credit risk even though they fall outside the guidelines of the qualified mortgage (QM) rule. Rep. McHenry says that is opening the door for potential litigation against lenders. As nationalmortgagenews tells MHProNews, the QM rule, which is scheduled to take effect in Jan., 2014, protects lenders from litigation in cases of default, and also protects Fannie Mae, Freddie Mac and FHA loans. But McHenry, as Chairman of the House Financial Services Subcommittee on Oversight says: “If you truly desire that creditors venture outside the walls of the QM rule, I strongly recommend the CFPB work to remove the repercussions of legal action, rather than simply urge lenders to try their luck.”

(Image credit: texaslendingtoday)

Are Loans Unsafe Outside QM?

April 18th, 2013 Comments off

According to nationalmortgagenews, bankers were relieved when the Consumer Financial Protection Bureau (CFPB) released its qualified mortgage rule (QM) in January, which gives the lender protection if a borrower defaults. But now some bank executives are hesitant to make loans outside the QM rule, and worry they could be rapped on the knuckles if they do not. In testimony before a House Financial Services subcommittee (financial institutions), Ken Burgess of First Bancshares of Texas says the risk is too high outside the QM rule, and his bank will no longer offer those loans. Other bankers noted tighter credit standards make it tougher to meet the Community Reinvestment Act requirements, which is lending to less creditworthy borrowers. Charles Kim of Commerce Bancshares representing the Consumers Bankers Association, says, “There’s a continual friction between safety and soundness regulation and then the need to make loans in underserved markets.” MHProNews has learned the panelists support a bill in both houses of Congress to create an independent appeals procedure for bank examinations.

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NAHB Testifies before Congressional Subcommittee

April 10th, 2013 Comments off

The National Association of Home Buyers (NAHB), testifying before the House Financial Services Subcommittee on Housing and Insurance, urged lawmakers to move cautiously in reforming the Federal Housing Administration (FHA) because the tight lending standards are already preventing qualified home-buyers from obtaining mortgages, as MHProNews has learned. NAHB First Vice Chairman Kevin Kelly stressed the important role the government has played in this recovery because the private sector has “been unable or unwilling to meet housing capital needs,” especially for first-time home buyers, minorities, and those with limited down payment capabilities. “Changes to FHA’s programs cannot be separated from the larger discussion of reforming the complex housing finance system, including future reforms to Fannie Mae and Freddie Mac. Housing has led America out of every economic downturn and can do so again if the future policies regarding housing finance reforms are addressed in a manner that provides liquidity for the entire housing sector,” he added.

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MHI Testifies at Dodd-Frank Hearing

July 12th, 2012 Comments off

Speaking for the Manufactured Housing Institute (MHI) at a hearing on the impact of Dodd-Frank mortgage requirements before the House Financial Services subcommittee on Financial Institutions and Consumer Credit Wed. July 11, Tom Hodges, General Counsel for Clayton Homes, suggested Congress create a secondary market for manufactured home buyers so all residential borrowers will have access to the same products. Drawing more lenders to the market would create more competition and lower financing charges, he said. He also urged Congress to avoid any regulation that would be a barricade to lenders’ ability to make manufactured housing loans. His role at Clayton, the largest producer of manufactured homes in the country,  includes implementation of Dodd-Frank and other regulations. For the full transcript of his testimony, please click here.

(Photo credit: Pine Grove Mfg. Homes)

Congressional Hearing Set on Dodd-Frank Impact

July 6th, 2012 Comments off

The Manufactured Housing Institute (MHI) will testify before the House Financial Services Subcommittee on Financial Institutions and Capital Markets July 11 concerning the impact of Dodd-Frank on residential mortgage reforms. Clayton Homes General Counsel Tom Hodges, representing MHI during the hearing, will address the measure’s unintended consequences that limit credit availability for purchasers of manufactured housing, and will discuss the benefits of HR 3849, the bi-partisan Preserving Access to Manufactured Housing Act sponsored by Reps Stephen Fincher, Joe Donnelly, and Gary Miller. Other organizations in attendance include Mortgage Bankers Association (MBA), National Association of Homebuilders (NAHB), and the National Association of Realtors (NAR). MHProNews.com has leaned MHI is the only MH industry association to testify.

(Photo credit: MHProNews)

Who Said All the Bad Actors are Gone?

February 6th, 2012 Comments off

Manuel Santana, director of engineering for Cavco Industries, told a congressional subcommittee HUD’s negligence in implementing the Manufactured Housing Improvement Act of 2000 has contributed to the industry’s 80 percent decline in production. In testimony prepared for the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity, he said the Manufactured Housing Institute (MHI) has made numerous suggestions to improve the 2000 measure, and adapt to changes in the industry, but HUD is slow to respond to these recommendations. CronkiteNews tells MHProNews.com Santana, representing MHI said, “These delays result in lost sales and unnecessary interruptions in the construction process, which ultimately lead to loss of jobs and lost economic opportunity for the industry.” Noting the unknown impact on MH from new regulations, and the continuing struggle with lack of financing, he said HUD’s inefficiency has presented added problems to an industry that has seen 160 plants close and 200,000 jobs lost since 2000. Four other industry representatives also testified. Henry Czauski, acting deputy administrator for HUD’s Office of Manufactured Housing Programs, said to the legislators: “I want to assure the subcommittee the department has and continues to fairly and diligently implement the 2000 act in accordance with the statutory purposes to protect the quality, durability, safety, and affordability of manufactured housing.”

(Graphic credit: Manufactured Housing Institute)

 

Manufactured Housing Finance Relief Legislation Unveiled

February 2nd, 2012 Comments off

Representative Gary MillerDuring a hearing of the Financial Services Subcommittee on Insurance, Housing and Community Opportunity evaluating the effectiveness to which the Department of Housing and Urban Development (HUD) has implemented key provisions of the Manufactured Housing Improvement Act of 2000, Rep. Gary Miller (R-CA) formally unveiled legislation (H.R. 3849) to reduce regulatory burdens impeding access to affordable manufactured housing financing. In detailing challenges facing the manufactured housing industry, Congressman Miller cited a number of difficulties the industry has suffered over the past decade, including: a decline in new manufactured home construction of roughly 80 percent; the closure of more than 160 plants; and the loss of over 200,000 jobs. He specified that “Congress must address the problems with regulatory overreach that impedes the ability of consumers to obtain mortgage financing for manufactured homes.” The bill (titled the Preserving Access to Manufactured Housing Act) was developed on a bipartisan basis by Reps. Joe Donnelly (D-IN), Stephen Fincher (R-TN) and Gary Miller, in consultation with the Manufactured Housing Institute (MHI), to address both reducing the threshold by which small balance manufactured home personal property loans are considered High-Cost Mortgage Loans under provisions within the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) and thereby subject to punitive and onerous liabilities and clarifying that those selling manufactured homes—who are not fundamentally engaged in the business of mortgage origination —are not to be considered mortgage originators under the federal SAFE Act and thereby better able to provide adequate technical assistance to consumers throughout the manufactured home buying process—similar to the SAFE Act treatment of real estate brokers. The full text is available at MHMSM.com

(Image Credit: Rep. Gary Miller)