The U.S. House of Representatives has passed legislation to overturn federal regulations that have harmed consumers seeking to purchase or sell a manufactured home.  H.R. 650 passed the House on April 14th by a bipartisan vote of 263-162, as members saw through a smokescreen of misinformation disseminated by opponents of manufactured housing in the days leading up to the vote. Two days later, the Senate Banking Committee held a hearing where companion legislation, S. 682, was discussed.

With an average price of just $43,000, manufactured homes are a vital housing option for retirees, veterans, and working families, because the monthly loan payments are typically well below average apartment rents and traditional home mortgages. 

The Consumer Financial Protection Bureau has not used its statutory authority to establish appropriately flexible lending thresholds, resulting in manufactured housing lenders leaving the industry or eliminating certain loans because of increased liability, which has made it extremely difficult for buyers to find financing. The situation has also hurt the resale market, forcing existing owners to accept lowball, cash-only prices for their manufactured homes that also drive down surrounding property values.

H.R. 650 would improve consumer access to manufactured housing loans by adjusting percentage thresholds that already exist under the Dodd-Frank Act to address the impact of fixed costs on smaller loans. The bill would also improve the definition of a mortgage originator, enabling manufactured housing retailers to help consumers as long as they receive no compensation - e.g., payments from lenders. This is the same standard that applies to real estate agents selling site-built homes.

Read on to learn about our momentum and how you can help ensure the Preserving Access to Manufactured Housing Act is signed into law.  

House Floor Consideration Recap

The bipartisan sponsors of H.R. 650, Rep. Stephen Fincher (R-TN), Terri Sewell (D-AL), Andy Barr (R-KY), and Kyrsten Sinema (D-AZ) led House floor consideration of H.R. 650. They were joined by Rules Committee Chairman Pete Sessions (R-TX), House Financial Services Committee Chairman Jeb Hensarling (R-TX), Financial Institutions Subcommittee Chairman Randy Neugebauer (R-TX) and Financial Services Committee members French Hill (R-AR) and Roger Williams (R-TX) in arguing that this legislation preserves core consumer protections established by the Dodd-Frank Act while restoring access to credit for the purchase of manufactured homes by low- to moderate-income Americans, especially in rural and non-urban areas.

While those speaking in opposition to H.R. 650 during floor debate largely represented areas with limited manufactured housing, the bill's bipartisan supporters were from regions where manufactured housing is a necessity. They spoke about the challenges their constituents face under current regulations, including difficulties in obtaining manufactured home loans, particularly for smaller balance loans.

During floor debate, supporters of H.R. 650 argued that the bill would not tamper with the mortgage reforms of the Dodd-Frank Act as they apply to manufactured home loans. They pointed out that provisions such as the QM "Ability to Repay" requirement; prohibitions against steering a consumer to a loan with "predatory characteristics," prohibitions against steering incentives (yield spread premiums), prohibitions on mandatory arbitration in connection with mortgage loans; required disclosures regarding APR, loan terms, etc.; and other state and federal consumer protection laws would remain unchanged.

A letter from former Representative Barney Frank (co-author of the Dodd-Frank Act) was read into the Congressional Record during the debate. From June of 2011, the letter is in response to a constituent expressing concerns about the impact of the Dodd-Frank Act on the availability of manufactured housing financing, and says in part: "I'm very proud of the work I have done with the manufactured housing industry for years, and I was regretful to realize that we did have this problem. I do not think it is necessary to include manufactured housing as part of our effort to prevent abusive mortgage practices."

In addition to the Manufactured Housing Institute and its state affiliates, House passage of H.R. 650 was supported by the National Association of REALTORS�, Mortgage Bankers Association, National Organization of African Americans in Housing, National Association of Federal Credit Unions, and NAMB-The Association of Mortgage Professionals.

Click here to see the final vote tally. It is still important to remain in touch with House members as the legislation continues through the process. If your Representative voted yes, please be sure to thank them for their vote! If your Representative voted no, try to gain their support for manufactured housing in the future. Call the office and offer to answer any concerns they might have. To contact your Representative, call the Capitol Switchboard at (202) 224-3121 and ask to be directed to your Representative.  If you are not sure who represents you in Congress, tell the operator the zip code where you live and they will connect you to the correct office.

Senate Banking Committee Hearing

The Senate Banking Committee has begun its consideration of companion legislation to H.R. 650. S. 682 was introduced by Senators Joe Donnelly (D-IN), Pat Toomey (R-PA), Joe Manchin (D-WV), and Tom Cotton (R-AR). So far, Senators Shelley Moore Capito (R-WV), Mike Crapo (R-ID), and Bob Corker (R-TN) have added their names as cosponsors.  

During a Committee hearing examining the regulatory burdens to obtaining mortgage credit, considerable attention was given to S. 682 and the availability of manufactured housing financing. At Chairman Shelby's request, MHI Chairman Nathan Smith submitted written testimony about the need for S. 682. In addition, the President of the National Association of REALTORS�, Chris Polychron, included positive comments about S. 682 in his written testimony and spoke in support of the bill during his opening remarks and in response to Senators' questions.

A number of Senators used their time at the hearing to speak about the importance of manufactured housing in their states. Senators Cotton and Donnelly spoke in favor of S. 682. Senator Cotton pointed out that manufactured housing did not cause the financial crisis that the Dodd-Frank Act was written to address, that the 10 percent threshold codified in S. 682 is already included in the Dodd-Frank Act as flexibility for the CFPB, and that manufactured housing is an affordable homeownership option, and alternative to renting, for many in rural America. Senator Donnelly (D-IN) emphasized that responsible financing for manufactured home loans is possible and necessary, as opposed to the current situation where financing is not available.

Senators Merkeley (D-OR) and Heitkamp (D-SD) spoke about manufactured housing as an affordable housing option for many of their constituents, while also raising some concerns about protecting those who live in manufactured housing. These concerns were about matters not related to S. 682, and the Senators did not speak in opposition to the bill. Even though the consumer group witness testified against S. 682, no Senator spoke in opposition to the bill.

The Path Forward

The Preserving Access to Manufactured Housing Act (H.R. 650/S. 682) has positive momentum, and it is critical that we all work to ensure it continues to move through the legislative process.

We know that the DC-based consumer groups are working hard to stop our progress.  But, as we saw with the House vote on H.R. 650 and the favorable comments at the Senate Banking Committee hearing, grassroots communications can drown out the misinformation being sent to the Hill from those who do not understand the manufactured housing market.

Our champions on the Hill are telling us that the DC-based consumer groups are working overtime to defeat the bill. They have launched a smear-campaign in the press and they are saying that this bill will harm consumers.  As you well know, the true harm to consumers is from the current federal regulations. Because financing for manufactured housing became less available due to these regulations, consumers have been harmed.  This includes consumers living in, and those seeking to purchase, a manufactured home.

As Senators prepare to consider S. 682, our voice needs to be louder than the DC-based consumer groups.  With your participation, we can drown out the misinformation that is being sent to the Hill from those who do not understand the manufactured housing market. We can ensure all Senators understand the importance of manufactured housing as a critical resource for working families, and the largest form of unsubsidized affordable housing in the nation.

Contact your Senator Today!

Send an Email to your Senators. Click on the following button: Email now!  Follow the simple steps. The email has already been drafted for you.  All you have to do is insert your home address and click send. The message will be sent to both of your Senators. 

Call Your Senators. Call the Capitol Switchboard at (202) 224-3121 and ask to be directed to your Senator. (You need to call twice to communicate with each of your Senators).

• Ask that your Senator cosponsor S. 682.
• Tell them that manufactured housing is a critical resource for working families across the country. 
• Let them know this bill is critically needed because it alleviates the regulatory burdens that have impeded consumers' ability to purchase manufactured housing, which impacts the home values of exiting owners as well.

If you have any questions, please contact MHI's Senior Vice President, Government Affairs, Lesli Gooch, Ph.D. at (703) 558-0660 or [email protected].

Thank you for taking the time to support manufactured housing! 

The 2015 National Congress & Expo for Manufactured and Modular Housing was lively with attendees conducting business, networking, and attending educational and social events. Nearly 1,000 attendees represented every segment of the industry and hailed from 41 states and the District of Columbia, one U.S. territory and four countries. The exhibit hall was sold out with 103 occupied booth spaces.  Exhibitors reported that exhibit hall traffic was heavy and provided excellent business contacts and opportunities. 

Twenty-four corporate sponsors supported this year's Congress & Expo taking advantage of opportunities to distribute marketing materials, sponsor specific events, and introduce speakers.  MHI thanks the following 2015 Congress & Expo sponsors for their support.

Platinum Sponsors

Marcus & Millichap
Oliver Technologies, Inc.

RHP Properties
Sunstone

YES! Communities

Gold Sponsors

Assurant Specialty Property

Homefree Village Resorts, Inc.

Inspire Communities
ManageAmerica/Origen Services

Sun Communities, Inc.

UMH Properties, Inc.

Wells Fargo

Silver Sponsors
 

Adventure Homes, LLC

Champion Home Builders, Inc.

CU Factory Built Lending

KeyBank Real Estate Capital

Lippert Components, Inc.

MHVillage/Datacomp

Bronze Sponsors

Advantage Homes

CBRE

Santefort Neighborhoods

Shaw Industries, Specialty Markets

Style Crest, Inc.

Yale Realty & Capital Advisors

The 2015 Congress & Expo was kicked off on Monday afternoon with a golf tournament sponsored by Oliver Technologies. The tournament was held at the Arroyo Golf Club designed by the legendary Arnold Palmer. The 11th Annual Oliver Technologies Golf Tournament winners were: First Place Team - Ryan Howerton and Lance Hull with 21st Mortgage Corp., Jason Shaffer with PNC Real Estate, and Rick Rand with Great Value Homes, Inc.; Closest to the Pin - Jason Shaffer; and Longest Drive - Lance Hull.

On Tuesday, the MHI National Communities Council held its annual Spring Forum which was sponsored by YES! Communities.  Topics included marketing, cash flow management, energy efficiency and conservation, managing rental homes, new home sales and resident relations. 

Due to increased interest in utilizing manufactured and modular housing for new development, the popular Developing with Manufactured Housing Seminar, which was sponsored by Sun Communities, was brought back to the Congress & Expo this year. Topics included an overview of the industry and the range of factory built home products, the development process, conducting due diligence, creating a pro forma, financing, and zoning. The day-long program also included a case study of a successful community rehabilitation project and a question and answer session with representatives of Cavco Industries, Inc., Champion Home Builders, Inc. and Clayton Homes, Inc. 

The 2015 Keynote sponsored by ManageAmerica and Origen Services was given by Dan Veto, Senior Advisor at Age Wave. In partnership with Merrill Lynch, Age Wave had just completed a comprehensive national study titled Home in Retirement: More Freedom, New Choices. Click here to access the full report. How and where older adults choose to live will have widespread implications for the different ways homes might be designed, what resources will be needed, and how communities nationwide should prepare for an aging population. Dan began his presentation by showing changes in aging and retirement over time and discussing the impact of increased longevity on retirees and their housing choices. In the study, retirees reported unprecedented freedom to choose where they want to live, including freedom from many work and family obligations that could dictate home choices, as well as greater freedom from home-related financial worries and mortgage payments.

Thursday morning's general session was sponsored by Homefree Village Resorts, Inc. and the speaker was Pamela B. Danner, Administrator, Office of Manufactured Housing Programs, at the U.S. Department of Housing and Urban Development. Ms. Danner has just finished her first year as head of the manufactured housing program where there have been many new developments and accomplishments. The following were a few of the items discussed.  Danner reported that HUD has contracted with SEBA Professional Services for the development of a HUD Administered Manufactured Home Installation Program for states that have not adopted and received HUD approval for state run installation programs. HUD also finalized a contract with the Savan Group for the HUD Dispute Resolution Program which will be run in states without formal dispute resolution programs. She reported that the Manufactured Housing Consensus Committee held its first meeting in over two years during her first year as administrator and that just the week prior to the Congress & Expo HUD sponsored a meeting of SAAs and PIAs in Washington, D.C.  Click here to access the presentation and see a detailed outline of all issues discussed.

Ten educational workshops were held during the event on Wednesday and Thursday. Handouts from those presentations can be viewed on MHI's Congress & Expo Web site at www.congressandexpo.com by clicking on the Conference Workshops tab. Programs covered a wide range of issues including consumer financing, commercial lending, regulatory compliance, sales and marketing, energy efficiency, community management, government and non-profit assistance programs, and landlord tenant law.

The 2015 National Industry Awards Luncheon sponsored by RHP Properties recognized individual companies, land-lease communities, retail sales centers and manufactured and modular home designs and interior designs. Home manufacturers receiving EPA EnergyStar Certified Homes Market Leader awards were also recognized. For a list of award recipients click here. To view the awards presentation, click here.

The 2016 National Congress & Expo for Manufactured and Modular Housing will be held at the Caesars Palace in Las Vegas on May 3-5, 2016.

Consumer Complaint Handling - The Primary Focus of Recent HUD-SAA-PIA Meeting

Earlier this month, HUD hosted a meeting in Washington, D.C. with 29 State Administrative Agencies (SAAs) and seven Primary Inspection Agencies (PIAs).  Also in attendance were five state association executives, three MHI manufacturer representatives and three MHI supplier members, as well as MHI and MHARR.

During the three day meeting, participants discussed the primary responsibilities of SAAs and PIAs which are primarily consumer complaint handling; activities related to the determination, notification and correction of home defects; and, non-compliance with the standards. There was substantial discussion about new regulations finalized last year that require monthly IPIA inspections of manufacturer records to determine whether manufacturers are making appropriate determinations about non-compliances, defects, serious defects and imminent safety hazards.  During several breakout sessions, the SAAs and Primary Inspection Agencies considered a number of "real life" case studies relating to record reviews, design approvals, and in-plant report findings by IPIAs.

The three-day session also included presentations on various state installation programs, including a presentation by HUD's contractor, who is developing installation programs for those "default" states that do not have programs.  MHI member George Porter presented part of the new training program and Web site under development by MHI's Manufactured Housing Educational Institute.  MHEI's program will be utilized for training in the 12-15 states.

MHI supplier members from the ground anchor sector highlighted a new ground anchor listing and testing requirement that no longer requires SAAs to conduct their own testing and certification of such ground anchor systems, thus saving consumers and state agencies money.

Participants also learned that HUD's contractor is developing a consumer education program to inform consumers about HUD's Dispute Resolution Program which was authorized by the Manufactured Home Improvement Act of 2000.   

Currently, HUD is administering this program in the 28 states that do not have their own program.  HUD believes that the program is under-utilized because consumers are not aware that the program exists. However, most SAAs as well as industry participants believe that consumer complaints are addressed voluntarily or as required by state warranty laws;   therefore, dispute resolution (arbitration) is not needed.  As one SAA pointed out, HUD's Dispute Resolution Program is "a solution waiting for a problem."  MHI has asked HUD to disclose its contract award for this program, but it has yet to do so.  According to the HUD budget, it is estimated that the HUD contractor will receive up to $1 million for this multi-year effort.

Manufactured Housing Consensus Committee (MHCC) Activities

On May 5, 2015 the General Subcommittee of the Manufactured Housing Consensus Committee (MHCC) will hold a conference call to consider recommendations for a new multifamily standard for manufactured housing.  A working group met earlier this month to hammer out a proposal for a two unit HUD-Code home that could meet the rural housing needs of farm workers, and other workforce rental housing.  The conference call will be held from 1-4 p.m. EST.  The teleconference meeting is open to the public. For information about the meeting, and the agenda, click here.

The MHCC will hold a face-to-face meeting August 17-21 in the Washington D.C. area.  Details to follow.

For more information, contact MHI Vice President of Regulatory Affairs Lois Starkey at (703) 558-0654 or [email protected].