Great news everyone!
http://www.housingwire.com/news/2013/04/26/lawmakers-fight-save-financing-manufactured-homes
p.s. For those who support this bill, here's a link if you'd like to write your representatives: http://www.opencongress.org/bill/112-h3849/letters
Thanks for reading! :)
Bear in mind that what Rachel H. wrote about and provided links to is proposed legislation - not law.
If you want to become law, You need to get involved by writing your Senators and your Representatives and encouraging others to do the same.
Passing this bill into law will be an uphill battle and MHI needs all the grass roots support it can get. If you don't get involved and the bill fails, you have no one to blame but yourself.
Not sure if I understand the article 100%. Are they working for an amendment to the SAFE act, to exclude mobile homes aka personal property?
Here's the summary analysis document:
http://www.manufacturedhousing.org/webdocs/HR%201779%20Action%20Alert.pdf
It also includes a sample letter for those writing to their representatives.
Hope that helps!
Right on! This is good stuff Rachel. Thanks for keeping us posted.
Best,
John Fedro
Bear in mind that what Rachel H. wrote about and provided links to is proposed legislation - not law.
If you want to become law, You need to get involved by writing your Senators and your Representatives and encouraging others to do the same.
Passing this bill into law will be an uphill battle and MHI needs all the grass roots support it can get. If you don't get involved and the bill fails, you have no one to blame but yourself.
I completely missed this one in my alerts. Rachel H. Thank you and I can't wait to get on the wagon immediately!
Seemed relatively easy to go directly to the link below to be a "citizen cosponsor":
https://www.cosponsor.gov/all/all/ccc/all/hr%201779
If you have to search for the bill, it is H.R. 1779.
Update: 21 cosponsors and counting
http://www.govtrack.us/congress/bills/113/hr1779#overview
(Note: Click on the cosponsor "show" link to see the full list of state support.)
Thanks everyone for your efforts and support, keep them coming!
Wow! New update: 27 cosponsors and counting.
http://www.govtrack.us/congress/bills/113/hr1779#overview
Here's are more calls to action and support:
Tennessee Manufactured Housing Association:
http://www.tnmha.org/TMHA2/html.pages/Legislation/HR1779.html
Western Manufactured Housing Communities Association
http://www.wma.org/MHI-call-to-action-1779
MHI Call to Action Alert: Press Release
Thanks for your support and for helping to spread the word!
Many of us are reaching out to our residents and/or borrowers to get them to sign petitions as well. Here is a sample:
The Honorable [First Name] [Last Name]
U.S. House of Representatives
Washington, DC 20515 ??
Dear Representative [Last Name]: ??
I as an Illinois resident and manufactured homeowner who choses to own and live in a manufactured home am signing this petition to respectfully request you co-sponsor the Preserving Access to Manufactured Housing Act (H.R. 1779) sponsored by Reps. Stephen Fincher, Bennie Thompson and Gary Miller. I also live in your district so you are my Representative in Washington, D.C.
As a manufactured home owner I am concerned about what is going to happen to the value of my home if the current rules set in place by the Consumer Financial Protection Bureau are allowed to stand. This legislation would protect the availability of financing for affordable manufactured housing, a critical resource for myself, and 16,000 + Illinois residents who already own and live in manufactured homes. ??
It is for these reasons I urge you to co?sponsor H.R. 1779. To co?sponsor, contact Erin Bays in the office of Rep. Stephen Fincher at 202.225.4714.
Thank you for your consideration of this request ??
Respectfully submitted, ??
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signature print name Address City
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signature print name Address City
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signature print name Address City
Many of us are reaching out to our residents and/or borrowers to get them to sign petitions as well. Here is a sample:
The Honorable [First Name] [Last Name]
U.S. House of Representatives
Washington, DC 20515 ??
Dear Representative [Last Name]: ??
I as an Illinois resident and manufactured homeowner who choses to own and live in a manufactured home am signing this petition to respectfully request you co-sponsor the Preserving Access to Manufactured Housing Act (H.R. 1779) sponsored by Reps. Stephen Fincher, Bennie Thompson and Gary Miller. I also live in your district so you are my Representative in Washington, D.C.
As a manufactured home owner I am concerned about what is going to happen to the value of my home if the current rules set in place by the Consumer Financial Protection Bureau are allowed to stand. This legislation would protect the availability of financing for affordable manufactured housing, a critical resource for myself, and 16,000 + Illinois residents who already own and live in manufactured homes. ??
It is for these reasons I urge you to co?sponsor H.R. 1779. To co?sponsor, contact Erin Bays in the office of Rep. Stephen Fincher at 202.225.4714.
Thank you for your consideration of this request ??
Respectfully submitted, ??
?
____________________________ _______________________ ____________________________________
signature print name Address City
____________________________ _______________________ ____________________________________
signature print name Address City
____________________________ _______________________ ____________________________________
signature print name Address City
____________________________ _______________________ ____________________________________
signature print name Address City
____________________________ _______________________ ____________________________________
signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
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signature print name Address City
____________________________ _______________________ ____________________________________
signature print name Address City
____________________________ _______________________ ____________________________________
signature print name Address City
___________________________ _______________________ ____________________________________
signature print name Address City
Many of us are reaching out to our residents and/or borrowers to get them to sign petitions as well. Here is a sample:
The Honorable [First Name] [Last Name]
U.S. House of Representatives
Washington, DC 20515 ??
Dear Representative [Last Name]: ??
I as an Illinois resident and manufactured homeowner who choses to own and live in a manufactured home am signing this petition to respectfully request you co-sponsor the Preserving Access to Manufactured Housing Act (H.R. 1779) sponsored by Reps. Stephen Fincher, Bennie Thompson and Gary Miller. I also live in your district so you are my Representative in Washington, D.C.
As a manufactured home owner I am concerned about what is going to happen to the value of my home if the current rules set in place by the Consumer Financial Protection Bureau are allowed to stand. This legislation would protect the availability of financing for affordable manufactured housing, a critical resource for myself, and 16,000 + Illinois residents who already own and live in manufactured homes. ??
It is for these reasons I urge you to co?sponsor H.R. 1779. To co?sponsor, contact Erin Bays in the office of Rep. Stephen Fincher at 202.225.4714.
Thank you for your consideration of this request ??
Respectfully submitted, ??
?
____________________________ _______________________ ____________________________________
signature print name Address City
Many of us are reaching out to our residents and/or borrowers to get them to sign petitions as well. Here is a sample:
The Honorable [First Name] [Last Name]
U.S. House of Representatives
Washington, DC 20515 ??
Dear Representative [Last Name]: ??
I as an Illinois resident and manufactured homeowner who choses to own and live in a manufactured home am signing this petition to respectfully request you co-sponsor the Preserving Access to Manufactured Housing Act (H.R. 1779) sponsored by Reps. Stephen Fincher, Bennie Thompson and Gary Miller. I also live in your district so you are my Representative in Washington, D.C.
As a manufactured home owner I am concerned about what is going to happen to the value of my home if the current rules set in place by the Consumer Financial Protection Bureau are allowed to stand. This legislation would protect the availability of financing for affordable manufactured housing, a critical resource for myself, and 16,000 + Illinois residents who already own and live in manufactured homes. ??
It is for these reasons I urge you to co?sponsor H.R. 1779. To co?sponsor, contact Erin Bays in the office of Rep. Stephen Fincher at 202.225.4714.
Thank you for your consideration of this request ??
Respectfully submitted, ??
?
Many of us are reaching out to our residents and/or borrowers to get them to sign petitions as well. Here is a sample:
The Honorable [First Name] [Last Name]
U.S. House of Representatives
Washington, DC 20515 ??
Dear Representative [Last Name]: ??
I as an Illinois resident and manufactured homeowner who choses to own and live in a manufactured home am signing this petition to respectfully request you co-sponsor the Preserving Access to Manufactured Housing Act (H.R. 1779) sponsored by Reps. Stephen Fincher, Bennie Thompson and Gary Miller. I also live in your district so you are my Representative in Washington, D.C.
As a manufactured home owner I am concerned about what is going to happen to the value of my home if the current rules set in place by the Consumer Financial Protection Bureau are allowed to stand. This legislation would protect the availability of financing for affordable manufactured housing, a critical resource for myself, and 16,000 + Illinois residents who already own and live in manufactured homes. ??
It is for these reasons I urge you to co?sponsor H.R. 1779. To co?sponsor, contact Erin Bays in the office of Rep. Stephen Fincher at 202.225.4714.
Thank you for your consideration of this request ??
Respectfully submitted, ??
New update: 99 cosponsors and counting.
https://www.govtrack.us/congress/bills/113/hr1779#overview
MHI is really pushing this to all manufactured housing associations.
Here are more calls to action and support:
Manufactured Housing Communities of Arizona
http://azmhca.com/wp-content/uploads/re-docs/4a028_doc_1.pdf
Pennsylvania Manufactured Housing Association
http://www.pmha.org/Industry/GovernmentAffairs/HR1779.aspx
Thanks everyone for continuing to spread the word and for your support!
New update: 105 cosponsors and counting.
https://www.govtrack.us/congress/bills/113/hr1779#overview
Thought I'd also share an informative article I came across on the status of this proposed bill:
It's great to see this finally getting the momentum it deserves. Thanks so much everyone for your continued support!
New update: S. 1828 (a similar bill) has been introduced in the Senate.
Here are the details:
Manufactured Housing Institute (MHI) Press Releases
http://www.manufacturedhousing.org/lib/showtemp_detail.asp?id=1087&cat=whats_hot
http://www.manufacturedhousing.org/lib/showtemp_detail01.asp?id=2174&cat=whats_hot
MHI Detailed Issue Brief/Action Alert
http://www.manufacturedhousing.org/webdocs/senate%20house%20MH%20alert%20Dec%202013.pdf
Nice to see this getting support on both the U.S. House of Representatives and now on the Senate side. Thanks again for your support and for continuing to spread the word!
Thought I'd share this heated discourse at a recent House Financial Services Committee hearing regarding manufactured housing:
http://www.businessweek.com/videos/2014-01-28/cordray-calls-panel-members-comments-offensive
Thanks for reading and for your continued support!
Thought I'd share with you all some updated news:
http://reversemortgagedaily.com/2014/03/02/house-approves-bill-to-overhaul-cfpb/
Thanks for reading and for your continued support!
What is your opinion as to the specific modification or amendments proposed?
I can't open the pdf file, I read the article.
I can also read between the lines. I'd be for registered dealers, mobile home lots, having greater flexibility.
I'd imagine the amendment would be written with loopholes large enough to pull a MH through.
I think much of the SAFE Act, as to seller financing, was specifically accomplished to address the issues with Lonnie Deals, I'm not sure they would wipe all of that out. Lowering the threshold with exemptions seems to open the wild west to the $15K bottom feeders, they'd simply go back to the old ways without any incentive to operate ethically, in that case I'd have a different feeling about it.
I do think individual investor/operators are being hammered too hard in reality, but free reign is not in the public interest IMO, due to the dealings of a few.
It's a complicated situation, too much oversight or not enough to keep some honest.
Now that I'm hated by all MH types, as a compliance type, what is the extent and effect of this proposal? :)
http://reversemortgagedaily.com/2014/03/02/house-approves-bill-to-overhaul-cfpb/
Thanks for reading and for your continued support!
Kind of what I thought, a move to hamstring the CFPB hated by one party, not about transparency it's about political appoints by the President confirmed by the Senate.
From a regulatory standpoint this is a bad idea, it destabilizes regulatory consistency according to the political powers at the time who may be in the majority. That is bad for banking.
Translated, the regulations would end up being at political whims, tough under one party and eased to the extent of chaos at the other end. Evidence of regulatory failure is the housing bust we are getting out of. Regulators need a consistent basis to apply oversight, not wishy-washy or no enforcement and then a crack down.
Leave it to politicians to screw things up.
The other point of this is to take the teeth out of the regulators, while your initial gut reaction is yahoo, not so fast, most of the subject Acts open financing back up to common sense type lending, increasing qualifying ratios, which means after all the whiners are done crying about compliance means a greater availability to loans, not the contrary as claimed. What most don't see is that while predatory lending has been shut down, banks have greater leeway to make loans that don't fit in the square hole as previously required. Loans that didn't fit the square hole were more apt to be assessed as predatory, the hole has been bored out making it larger but requiring easier guidelines avoiding the predatory assumption being made.
Passing the House Is no surprise, the Senate is a different matter.
Either way, leave it to politicians to keep things unsettled and in chaos. :)
I am curious as to what your thoughts would be, as to a solution, that would protect the general public and yet be feasible for the individual owner operators to participate in.
Currently, I don't see it as being a market that LMO's or servicers want to participate in and banks still aren't clamoring to jump into the sub $20k manufactured home lending arena. That leaves the smaller operators to fill a void in a space that no one else deems worthy of their attention.
I agree that some legislation should be required and may even be healthy. In fact, I wouldn't mind it weeding out the unscrupulous, who do take advantage of those that require affordable housing, by employing predatory lending practices. Yet, at the same time the majority of us are in this business to make a profit and if the business model no longer supports that, we may be moving on to different pastures.
So is there an ideal solution that would continue to provide access to affordable housing ownership and give business owners an incentive to provide it, while protecting those it needs to protect?
@Matt B. glad you asked!
It could be very simple. A buyer should be qualified as to payment, taking take 32% of their gross income as a payment. Set an interest rate above the 1 year T-Bill in the month of origination. A graph published by HUD could show the acceptable highest margin based on a buyers income. A loan term could not exceed 15 years on any loan under 20,000, as the initial loan amount increases the amortized period would increase but not over 30 years.
You then have the maximum payment amount, the interest rate and the amortized period which yields the amount of the loan they qualify for, that would be the maximum financed amount. If the sale price is higher the difference must be paid as an initial down payment.
A dealer would be required to document income received for at least two years based on tax returns. If a higher income has been received for 12 consecutive months the higher income could be used, otherwise gross income would be averaged for 24 months.
Compensating factors and exceptions:
One exception being for buyers getting off active duty military service within the past 12 months, a current HUD verification of employment, showing favorable probability of employment with a pay rate stated would qualify at that income level. Getting off active duty more than 12 months ago would allow a 6 month non-employed period beginning from the ETS date to a maximum period of 30 months at which point the ex-service member would fall into the required 24 month look back.
Government subsidies, such as food stamps or other assistance may be included in gross income.
Child support and or alimony must be paid through the court and have a payment history of on time payments for the past 12 months and be expected to continue for 3 or more years based on children's ages or court order. The borrower would sign an affidavit that, in the case of alimony being more than half the qualifying income, that the borrower has no intention of marriage within 6 months, if so the party marring would be qualified as well and co-sign the note.
Unmarried joint tenancy would qualify both incomes and each execute the note as borrower and co-borrower/guarantor, they would not be required to be on title or deed, but could be.
Any annuity income expected to become payable to a borrower, such as a court ordered judgment granted to be paid by any insurance company, trust or any insured or bonded entity within 6 months may be included with income. Lump sum settlements expected would not be a qualifying income.
Other income expected to be received within 6 months from a reasonable source or future employer may be included if such income is from some line of work that has been accomplished by the borrower within the past 24 months and a history of such work for more than 3 years. (This allows someone with a past work history who is reentering the work force with verifiable employment beginning within 6 months to use that expected income) Any expected income counted then requires the borrower to have 6 months reserves of PITI.
The notes to be used would be standardized at a fixed rate. One note for the MH with land, another for MHs without land, the differences reflecting default provisions. No balloon payment allowed on any MH valued at less than $25,000. MHs sold above 25,000 could have a balloon payment no sooner than the amortized term providing for half of the principal amount being paid and with the MH not being older than 10 years at the time of the balloon required. Balloon payments would not be allowed in any rural area identified as being underserved by institutional insured lenders.
Notes may not be modified over the term except to extend the amortized period for the length of time beyond 6 months for the same period of any default. No payment or interest rate may be modified unless one or the other or both are reduced.
Default provisions would be governed by state law where the collateral is located. A 30 day notice would be required to be given that the lender intended to begin any repossession or proceeding as allowed by law, such notice required prior to notices required by state law, if state law requires less than 30 days notice. For example; if state law allowed 15 day notice, the borrower would receive 30 days notice prior to action taken. Foreclosure proceeding requiring 30 or more days under state laws would not be effected, the intent requiring at least 30 days notice prior to any proceeding to secure collateral.
If the MH is taxed as RE and RE is included then the default provision would be according to state foreclosure laws.
No prepayment penalty would be allowed.
Payments would be first applied to accrued interest, then to any late fee not in excess of ten percent of the payment required or $25.00, whichever is greater, then to principal outstanding.
Servicing fees by third parties would be required to be included to the qualifying ratios of the loan. Any exemption from dealer servicing where the lender services the loan would require any method of payment to be made directly by the borrower to a verifiable account that allows verification of payments by the borrower. Costs of such account may be paid by the borrower and if so, included in the qualifying ratios. Any tax filings required would be at the expense of the lender. Costs of notices may be at the expense of the borrower and treated as advances for taxes or insurance to principal.
If these guidelines were followed regulators would then make the assumption that the loan was not predatory so long as the profit margin for the dealer did not exceed 100% from any sale under $25,000.00 for any MH older than ten years.
I'd say that covers it, IMO. Dealers would be left on their own to process the loan without any loan originator requirement licensing other than registering according to state laws as applicable. If an operator is not determined to be a dealer for any reason, the operator would be required to register their entity with the Secretary of State with corporate filings indicating they were in the business of selling utilizing seller financed sales.
Non-payment of taxes for a period greater than 30 days would not be grounds for accelerating the note but will allow the lender to pay taxes and include the amount plus up to ten percent as a fee to the principal amount bearing interest at the note rate. The lender shall treat insurance premiums in the same manner. Any subsequent default in paying taxes or insurance would then become a default allowing the lender the option of paying as in the first instance or accelerating the obligation to maturity.
Dealers would be required to process verifications directly with those parties required to verify any matter, borrowers may not deliver or collect any verification with third parties. The dealer would be required to hold the loan file processed for a period equal to the statute of limitations applicable to the transaction by state law, but no less than 12 months beyond the term of the loan.
Comments? Questions? Ideas? :)