Earlier this spring, 4 U.S. Senators including our own Joe Donnelly (D-IN), introduced legislation to alleviate some of the regulatory burdens that have hampered consumers’ ability to purchase manufactured housing.

Called the Preserving Access to Manufactured Housing Act, the bill addressed recent federal regulations in the Dodd-Frank Act that work against the unique nature of manufactured home financing and sales.

“Working families across the country, particularly in rural areas, depend on access to financing for affordable manufactured homes,” said Nathan Smith, Chairman of the Manufactured Housing Institute. “Manufactured homes are the largest form of unsubsidized affordable housing in the nation.”

The Preserving Access to Manufactured Housing Act amends the thresholds that have caused small balance manufactured home loans to be classified as high-cost. While the cost of originating and servicing a $250,000 loan and a $25,000 loan are generally the same in terms of real dollars, the cost as a percentage of each loan’s size is significantly different. This difference causes the smaller-sized manufactured home loan to potentially exceed the new thresholds (in Dodd Frank) and be categorized as high-cost, even though there is nothing predatory about the features of the loan.

This bill excludes manufactured housing retailers and sellers from the definition of a loan originator, so long as they are only receiving compensation for the sale of the home and not engaged in financing the loans.

Despite having broad-based bipartisan support, this bill did not make it through Congress prior to adjournment. You can read the Senators’ press release about the bill by clicking here.

Senator Donnelly hopes to bring the bill back to the Senate floor again next session. Stay tuned!


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