Posts Tagged ‘CFPB regulations’

Conventional Housing, not Manufactured Housing, caused the meltdown that gave us Dodd-Frank and the CFPB

July 24th, 2015 No comments

The situation that led to Dodd-Frank, the Safe Act and the CFPB had virtually nothing to do with manufactured housing. That meltdown in housing in 2008 that led to Dodd-Frank was caused by poor conventional ‘on-site’ house lending. Yet we in MH got dragged into it by a reactionary regulatory response by the government.

As a result, the most common method of selling our homes to consumers (as personal property) has been regulated so hard, that even local lenders, not just big U.S. Bank, have pulled out. It appears that the way the government has decided to “protect” consumers from so-called “predatory lending” is to make it impossible for them to get a loan.

Our homes were already the most regulated form of housing in the history of mankind largely, because policy makers just don’t understand our product or its benefits to millions of consumers.

S 682 will allow the consumers that need the affordability offered by our homes reasonable access to financing that fits the needs of their family. It will save them over rent. We see this reality in our business, at the ground level, rather than some non-profit group’s office that claims to speak for consumers. ##

onManufacturedHomeRetailerTX-IndustryVoicesMHProNews-com-Jody Anderson
MH Retailer, Texas



(Editor’s Note: This is one of several posted comments that have doubled in the last 12 hours on The Hill’s Congressional blog.  It is reprinted with permission.  Please see Ross Kinzler’s blog post, and then comment yourself on the post linked here.)

As an FYI to those ‘tracking’ the comments, please scroll to the bottom of the comment section every time.  The Hill’s comment section has no discernable pattern on where the comments are posted, unless they are a reply.  The most recent comment is not always ‘at the top’ of the other comments.  MHProNews wants to thank and commend all of those who’ve already take 5 to sound off on this highly read Washington DC blog for their pro-MH financing efforts.)

An analysis of The Atlantic’s report on Manufactured Housing, CFPB and MH Financing

October 27th, 2014 No comments

One thing that strikes me about the article in “The Atlantic” is that there was a great deal of good press for manufactured housing. It touted the energy efficiency, the lack of waste in the factory building process and the ability for more modest income families to become home owners. All great points.

On the negative side, it seems to focus on what truly plagues this industry and that is undeniably, the difficulty in financing manufactured homes. Unfortunately, the industry is caught between a rock and a hard place. Chattel loans are under the exact same strict CFPB regulations that apply to mortgages, but there are no lenders or secondary markets that consider them the same as a mortgage.

If CFPB is going to continue this interpretation, they should also mandate that any lender allowing conventional mortgages cannot simply deny a manufactured home loan.

Many manufactured home consumers are elderly, disabled and families with children. The refusal of lenders to loan on manufactured homes in a land-lease community seems to me to cause a disparate impact on at least three protected classes; age, disability and family status. The industry is not making this argument and I truly believe this is a talking point we should make for our cause.

In addition, some non-profits that are pro-manufactured housing are advocating for manufactured homes in land lease communities to be considered real property. If this would bring lenders to the table, I would say it might be worth looking into. Unfortunately, this is not a real solution and in fact can cause some serious problems. Some states already have this type of arrangement and they have no more lending than any other states.

Let’s keep the conversation going and try some new arguments and strategy to get this industry motivated to the point where we see retail sales centers popping up in high visibility locations.

Let’s try to get communities filled with NEW homes that will revitalize the community and provide that affordable housing the entire industry is so proud of. It is time to move forward and that will take the voice of the entire industry speaking to Federal, State and Local officials that are motivated to help. ##

Amy-Bliss-CAE-wisconsin-housing-allianceAmy Bliss, CAE
WI Housing Alliance/Tomorrow’sHome Foundation
258 Corporate Drive, Suite 200C
Madison, WI 53714

(Editor's Note: Amy Bliss' response is to the article inThe Atlantic entitled, The Case for Trailer Parks, linked here.

As with all OpEds, the views expressed may or may not represent those of MHProNews or our sponsors. We welcome other perspectives on this or other topics of interest to industry professionals. Please send your letter to the editor or OpEd – with Industry Voices in the subject line – to this link, thank you.)