Archive

Posts Tagged ‘st mortgage’

MHI 2013 Annual Meeting Recap

October 10th, 2013 No comments

IMHA Executive Director Mark Bowersox attended the Manufactured Housing Institute’s (MHI) annual meeting held September 28 – October 1 in Carlsbad, CA. As with most recent industry meetings, speakers and conversations at the event were focused on the impact of the Dodd-Frank consumer protection legislation and reforming the CFPB’s upcoming regulations. MHI and other industry representatives continue to work with the CFBP on three key areas:

Exemption for manufactured housing appraisal requirements

Based on the most recent rules issued by the CFPB loans on all new manufactured homes, regardless of whether or not they included land, are exempt from the appraisal requirement. Loans on existing manufactured homes, not including land, are also exempt from the appraisal requirements. Additionally, all mobile homes (pre-HUD code) home loans are exempt. The CFPB’s rule solidifying these exemptions is still pending. When finalized the rule will go into effect in January.

Key rule clarifications and exclusions

Loan originator compensation guidelines issued by the CFPB this summer provide the industry with key exclusions from the points and fees calculation that lenders must perform and clarifies certain activities that retail sales staff can engage in without being defined as loan originators.

Manufactured home sales price is excluded from the points and fees definition and does not have to be included in calculations performed by lenders unless a creditor has knowledge that the sales price includes compensation for loan origination activities.

 

Retail sales commissions paid to employees is excluded from points and fees calculation requirements unless the salesperson is receiving compensation from a lender for loan origination activities.

According to MHI, activities that do not classify a retailer or its sales personnel as loan originators include:

  • Providing or making available general information about creditors and loan originators that may offer financing for manufactured housing
  • Gathering or collecting supporting information or documentation on behalf of a consumer for inclusion in a credit application
  • Providing general credit application instructions so that a consumer can complete it themselves
  • Financing the sale of no more than three homes in a year.

Activities that will make a retail employee be considered a loan originator include:

  • Filling out a credit application for a customer
  • Discussing particular credit terms with a customer
  • Directing or influencing a customer to select a particular lender or creditor

MHI continues to seek from the CFPB to provide further clarification on what activities retailers can engage in without being defined as loan originators.

MHI is still working with the CFPB and various consumer interest groups on the need to revise the upcoming High Cost Mortgage Loan triggers for manufactured home loans. IMHA will continue to be engaged on this issue, along with MHI and other interested parties. ##

mark-bowersox-imha-posted-industry-voices-guest-blog-mhpronews.com-75x75pxl-.pngMark Bowersox
Executive Director
Indiana Manufactured Housing Association
Recreation Vehicle Indiana Council
3210 Rand Road
Indianapolis, IN  46241

(Editor's Note: You can find more info on the LO Comp Rule and HOEPA from DJ Pendelton's article published in the Industry In Focus Reports module, linked here.

 

You can also find Mark Bowersox's “It's Now or Never” featured article, linked here. )

Manufactured Housing Institute and Consumer Groups Urge CFPB to Change Loan Originator Guidelines; Support Builds for H.R. 1779

September 15th, 2013 No comments

In a communiqué to MHProNews, MHI's Vice President of Regulatory Affairs, Jason Boehlert shared the following report to Industry members.

MHI and Consumer Groups Partner to Revise CFPB Rules

On September 5th, MHI joined with a coalition of consumer advocacy organizations, including the Center for Responsible Lending (CRL), Corporation for Enterprise Development (CFED) and National Consumer Law Center (NCLC), to jointly urge the Consumer Financial Protection Bureau (CFPB) to amend key mortgage finance rules and preserve access to credit in the manufactured housing market.

Since May, key MHI members and staff have been working with representatives of these three consumer groups to develop a compromise on rules related to loan originator compensation and classification, and HOEPA High-Cost Mortgage triggers – issues that are addressed in the Preserving Access to Manufactured Housing Act (H.R. 1779).

manufactured-housing-institute-logo-posted-mhpronews-industry-voices=guest=blog

Negotiations have been taking place through the assistance and participation of majority and minority staff of the House Financial Services Committee and Senator Sherrod Brown, who serves as Chairman of the Senate Banking Subcommittee on Financial Institutions and Consumer Credit.

As a result of the negotiations, MHI and the three consumer organizations have agreed to jointly ask the CFPB to clarify and amend its rules in two key areas:

Loan Originator Compensation — for purposes of classifying a manufactured home retail salesperson as a Loan Originator, urge the CFPB to better clarify that as long as no incentive is provided or offered by the retailer or the lender to the individual salesperson to steer the consumer to a certain lender or loan product, then the salesperson should not be considered a Loan Originator.

While the CFPB has issued recent rules removing the manufactured home sales price and any sales commission paid to a sales person from points and fees calculations, an individual salesperson can still be classified as a Loan Originator by performing certain activities (i.e., taking an application, and referring a consumer to a lender). This activity would then classify the retailer as a mortgage broker. Both designations carry significant requirements and liabilities, most notably supervision by the CFPB.

HOEPA High-Cost Mortgage Triggers — consumer organizations have agreed to join with MHI in urging the CFPB to reopen its previous final rule on HOEPA. As a result of the significant dialogue that has taken place between the two sides, the consumer organizations have agreed that a significant reduction in access to credit would result in January 2014 (when the rule goes into effect) for the manufactured housing market unless the CFPB modifies the High-Cost Mortgage triggers. While the two sides have not agreed to a specific number, the willingness of the groups to push for the CFPB to reconsider their prior rulemaking is significant.

MHI and the consumer organizations will continue to meet with the CFPB on a joint basis in September on HOEPA issues. Pursuing a strategy of engagement with consumer groups provides the industry the opportunity to underscore the broad impact of CFPB rulemaking on consumers and the industry. In addition, it will provide a more rapid resolution of the industry’s concern when compared to a potentially protracted legislative battle over reopening the Dodd-Frank Act.

However, it is important to note that as the industry gains ground with the CFPB and the consumer groups, Congressional support for the H.R. 1779 continues to build.

Co-Sponsors to H.R. 1779 Grow

During the month-long Congressional recess, more than 20 U.S. Representatives added their names as co-sponsors to H.R. 1779. Currently, nearly 70 Representatives have co-sponsored the measure and support continues to grow. MHI thanks its members and the national network of state associations for their hard work in urging Representatives to co-sponsor this important legislation (to view a current list of co-sponsors, click here).

As has been previously mentioned, provisions of H.R. 1779 were included in GSE reform legislation (PATH Act; H.R. 2767) that was approved by the House Financial Services Committee and MHI staff continues to work with committee staff to seek an opportunity to move the legislation separately.

While the CFPB has provided some key relief in recent rulemakings to the manufactured housing industry – with respect to appraisals and the calculations of points and fees – work still remains to be done to amend HOEPA triggers and the Loan Originator definition to better represent the needs of the manufactured housing market. Absent regulatory relief, statutory change is necessary.

The industry is asked to continue its outreach efforts to U.S. Representatives. Urge them to co-sponsor H.R. 1779. For more information, click here to access MHI’s action alert. ##

jason-boehlert-mhi-manufactuired-housing-pro=news-.pngJason Boehlert
Manufactured Housing Institute (MHI)
Vice President of Government Affairs
1655 North Fort Meyer Drive
Suite 104
Arlington, VA 22209

MHI members can contact Jason Boehlert at jboehlert@mfghome.org or (703) 558-0660.

(Logo image credits to their respective organizations. Photo credit of Jason Boehlert, MHProNews.com)

(Editor's Note:  Consumer groups did NOT in fact get on board for HR 1779, as we editorially observed in this blog post here.) 

IMHA-RVIC Executive Director’s Report from MHI’s Annual Meeting

October 10th, 2012 2 comments

mark-bowersox-imha-posted-industry-voices-guest-blog-mhpronews.com-75x75pxl-IMHA Executive Director Mark Bowersox attended the Manufactured Housing Institute's (MHI) Annual Meeting held earlier this week in San Antonio, TX.

More than 100 people attended the event, including representatives from 10 IMHA member companies. While MHI scheduled more than a dozen separate workshops, most discussed the ongoing regulation and legislation that challenges our industry at the national level. The Secure and Fair Mortgage Enforcement (SAFE) Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Anti-Money Laundering regulations continue to be the hot topics in nearly all meetings. In fact, MHI's Legislative and Regulatory Priorities remain the same going into 2013 as they were in 2012.

MHI is taking a two-tiered approach to SAFE and Dodd-Frank. First, they are promoting legislation (HR 3849 and S 3484) that would amend the existing Dodd-Frank legislation to increase the threshold on triggering a "high cost mortgage" as defined in the Dodd-Frank legislation. This same bill would also amend the SAFE Act to legislatively mandate some of the regulatory opinions currently contained in the Consumer Financial Protection Bureau's (CFPB) Proposed Rule on the SAFE Act.

MHI's hope is that this legislation will be passed during the "lame duck" session following the November elections. While several members of Indiana's congressional delegation have agreed to support these initiatives, I encourage all IMHA members to contact your Representative and Senators and urge them to support this legislation.

Secondly, MHI is seeking favorable interpretations of the law from the CFPB, the newly created federal agency responsible for regulating these laws. MHI has retained the services of SNR Denton, a Washington DC law firm specifically to lobby the CFPB on behalf of the manufactured housing industry. The CFPB isn’t expected to release new information before the November election but must distribute final rules by January, 2013. Although the CFPB is expected to review state policies to ensure states are regulating the SAFE Act appropriately, the CFPB has not yet addressed lease-option type contracts. These contracts continue to be a gray area and it’s possible that the CFPB will view these contracts as non-compliant and a way to skirt the law.

MHI staff reported that the CFPB auditors have begun levying fines against lenders, with Capital One and Discover being fined over $200 million each. The CFPB has the authority to regulate non-bank lenders, which includes manufactured housing communities.

Earlier this year we shared information with IMHA members through a variety of sources about the Anti-Money Laundering Regulations that went into effect on August 13 of this year. Many attendees at this week’s meeting had taken advantage of the template MHI created to help retailers develop an anti money laundering policy as part of their overall compliance program. This template was developed by Marc Lifset of McGlinchey-Stafford (MHI's law firm) and can be used at no charge to state association members.

I strongly recommend to anyone selling homes to review the seven questions from the template (see page 9) to see if your business is required to have a written anti-money laundering program, and to take the necessary steps to comply. At this time there is no plan to roll-back, repeal, amend or otherwise exempt manufactured housing from this federal regulation.

Click here to view the Financial Crimes Enforcement Network’s final rule on the Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements for Residential Mortgage Lenders and Originators. Click here to view or download MHI’s AML policy template.

Other notes from the meeting:

The 2013 National Congress and Expo in Las Vegas will be held at the Paris Hotel. The move was made in large part to a much better overnight room rate ($109) at the Paris Hotel.

MHI has retailer resources section on their web site. It includes valuable information on AML, Red Flags, Safe guards and more. I encourage all members to review these resources as a part of your ongoing compliance programs. As you can tell, MHI is working diligently in Washington on behalf of our industry. They have an extremely tough job trying to effect change for our niche industry in the enormous federal government. It is always a privilege to interact with and learn from their staff along with the other state association directors and industry leaders that were at the meeting. ##

mark-bowersox-imha-posted-industry-voices-guest-blog-mhpronews.com-75x75pxl-Mark Bowersox
Executive Director
Indiana Manufactured Housing Association – Recreational Vehicle Indiana Council
http://www.imharvic.org/

Leading the Charge: The Back Story on S. 3484

August 8th, 2012 No comments

tim-williams-ohio-manufactured-home-association-mhpronewsWhen you get a key piece of federal legislation sponsored in the U.S. Sentate, how does that happen? We asked Tim Williams to answer that question, and here is what he told us in his own words.

“First and foremost Nathan Smith is the game changer (with the credibility and relationship) who advocated and led the industry effort with the assistance of MHI. Nathan, myself, Tim Williams of 21st and MHI’s Jason Boehlert as well as several other MHI key finance members initially met with Senator Brown in January regarding the industry’s concerns with Dodd/Frank. Nathan did a great job debriefing the Senator and his staff on the issue and encouraging  legislative consideration. It was clear Senator Brown had a good understanding and sincere interest in the issue and our industry even before the meeting started.

I was able to discuss Ohio’s strong MH Commission’s role in consumer protection under the industry led independent Ohio MH Commission (6 of 9 commissioners must be appointed per a list nominated by OMHA per Ohio  law). Senator Brown was very interested in the industry, our consumer and their protections under the Ohio Commission including the fact that 100% of all homes are inspected during three critical phases of the  installation process in Ohio. He asked many questions regarding Ohio law, demographics and industry businesses as well as the jobs aspect of our economic impact in Ohio and nationally. He was clearly engaged with us on the issue.

Tim Williams of 21st was able to succinctly condense a rather complicated issue in to an understandable dynamic all could grasp and wrap our heads around. Tim’s ability to take the issue down to its basic components was very helpful in demonstrating the practical  challenges facing the ability to finance Ohioans in to affordable manufactured home ownership. I am very appreciative of Tim and 21st Mortgage's leadership on the Dood/Frank  concerns and believe his impact on the legislative aspect of all of this is probably underestimated but nonetheless critical to our success.

I personally appreciate the effort Senator Brown demonstrated in understanding our industry and concerns as well as to brief us on the legislative dynamics of the issue. I encourage all industry members to thank Senator Brown and express support to his office in any appropriate manner.  He stood up for our consumers and industry on a challenging issue regardless of the pressures he faces in an election year.

tim-williams-ohio-manufactured-home-association-mhpronewsTim Williams
 Executive Vice President
 Ohio Manufactured Homes Association
twilliams@omha-usa.org
 O:614-799-2340
 F:614-799-0616