WASHINGTON D.C. – Today, Congressman Stephen Fincher (TN-08) released the following statement after the House Financial Services Committee passed the Preserving Access to Manufactured Housing Act of 2015 (H.R. 650), important legislation to protect affordable housing:
“I’m pleased to see the Committee pass legislation that will help millions of Americans – particularly those in rural areas – have access to quality and affordable housing,” said Congressman Fincher. “New regulations that don’t recognize the uniqueness of the manufactured housing industry are taking housing options off the table for American families and negatively impacting those whose livelihood is connected to the industry. Today’s vote puts us one step closer to providing financing options and regulatory relief to the families and individuals in the industry who rely on manufactured housing. I look forward to the full House passing this important bill as soon as possible.”
Background on Fincher’s Bipartisan Preserving Access to Manufactured Housing Act of 2015:
Millions of low and moderate-income families across the country choose to purchase manufactured homes for their affordability and value; the average sales price of a new manufactured home is well under half the national median home price. Unfortunately, due to mortgage regulations issued by the Consumer Financial Protection Bureau (CFPB), that do not reflect the unique nature of the manufactured home sales process, access to financing for manufactured homes has been seriously harmed. Lenders are no longer able to offer small-balance loans, which are often used for the purchase of affordable manufactured housing, because CFPB rules unfairly sweep a large percentage of these loans into the “high cost” designation.
Since many lenders have been unable to offer these loans, thousands of manufactured home customers are unable to buy, sell or refinance their homes. Community owners have said their tenants have had to sell their homes well below market value to cash buyers because potential buyers can’t find financing. These below the market sales don’t just hurt sellers – they hurt every homeowner in the community who feels a huge loss on the equity of their home. Since the CFPB’s rule on the loan originator definition has gone into effect, retailers have been forced to stop providing technical assistance to consumers during the home buying process — ultimately leaving consumers in the dark about where they could potentially find financing for affordable housing.
The Preserving Access to Manufactured Housing Act would help ensure the availability of financing options for manufactured homes, while preserving the necessary consumer protections in the Dodd-Frank Act and the S.A.F.E. Act
