Tag Archives: Finance

Legislative Update

Language to Preserve Lending for Manufactured Housing Passes House Appropriations Committee

Legislative language that would preserve lending for manufactured homes cleared another important hurdle, passing the House Appropriations Committee.

In March, Rep. Rep. Andy Barr, R-Ky., along with 32 other members of the House, sent a letter to the appropriations committee imploring lawmakers to remove manufactured housing as a class from the increased protections designed by the Consumer Protection Finance Bureau.

“Since the CFPB’s Home Ownership and Equity Protection Act (‘high-cost’) rules consider costs as a percentage of a loan, smaller loans, like manufactured home loans, often violate points and fee caps,” the letter stated. “Because of the resulting high-cost designation, many lenders have stopped making manufactured housing loans. It is crucial that the definition of high-cost loans is modified so that manufactured housing loans are not unfairly swept under the high-cost designation simply due to their size.”

Census data shows that nearly 20 million people in the U.S. live in manufactured homes.

The bill, H.R. 1699 – “Preserving Access to Manufactured Housing”, resides in $20.2 billion Financial Services Appropriations bill that provides annual funding structure for the departments of Treasury and Judiciary, the IRS, the Small Business Administration, the Securities and Exchange Commission and other related agencies.

The language will need to pass the full House before moving to the Senate and White House before coming law.

In a prepared statement, the Manufactured Housing Institute offered its support of the efforts.

“The successful inclusion of the language demonstrates positive momentum and follows inclusion of the language in the Financial CHOICE Act, financial reform legislation that passed the House of Representatives earlier this month,” the statement read in part.

MHI is the national trade organization representing the factory-built housing industry.

Final Input Sought for Fannie Mae, Freddie Mac

The Federal Housing Finance Agency (FHFA) has announced a final request for input on Fannie Mae and Freddie Mac’s (the Enterprises) recently released proposal on Underserved Markets Plans within the “Duty to Serve” program.

Mel Watt, director of the Federal Housing Finance Agency, speaks in Chicago on affordable housing finance initiatives. From left, Paul Mullings, Sr. VP of Single-Family Strategic Business Initiatives for Freddie Mac; Russ Cross, regional manager for community outreach with Wells Fargo, and Sandra Thompson, deputy director in the Division of Housing Mission and Goals for the Federal Housing Finance Agency.

FHFA, the regulator of Fannie and Freddie tasked with enforcing the “Duty to Serve” provision, issued a final implementation rule on Dec. 13, 2016 mandated by the Housing and Economic Recovery Act of 2008.  The statute requires the Enterprises to serve three specified underserved markets – manufactured housing, affordable housing preservation and rural housing in a safe and sound manner for residential properties that serve very low-, low- and moderate-income families.

The rule requires each Enterprise to adopt a three-year Underserved Markets Plan to fulfill this mandate.  FHFA requests public input on the proposed plans through its dedicated web page by July 10, 2017.

It is anticipated that implementation of “Duty to Serve” provisions will create more financing options for potential home buyers, which also would be a benefit for the housing sector, including the manufactured housing industry.

“I strongly encourage stakeholders to submit feedback on Fannie Mae and Freddie Mac’s proposed ‘Duty to Serve Underserved Markets Plans,'” said FHFA Director Melvin L. Watt.  “FHFA will evaluate stakeholder input as part of our review process to ensure that the plans help the Enterprises meet their statutory obligations in a safe and sound manner.”

Each Enterprise will update their “Duty to Serve Underserved Markets Plan” after reviewing public input and FHFA feedback. Each Enterprise’s Duty to Serve Underserved Markets Plan must receive a non-objection from FHFA before becoming effective Jan. 1, 2018.

The objectives in the proposed and final plans may be subject to change based on factors including public input, FHFA comments, compliance with the Enterprises’ Charter Acts, safety and soundness considerations, and market or economic conditions.

Seminar: How to Advertise, Market and Sell Homes Successfully and Legally in 2014

BY: DAWN HIGHHOUSERishel Consulting Group

If you are attending the Louisville Manufactured Housing Show this month, plan on arriving early – there is a seminar the day before that you won’t want to miss! Rishel Consulting Group is offering an educational seminar on how to How to Advertise, Market and Sell Homes Successfully and Legally in 2014.

From the Rishel Consulting Group:

This program is designed to teach sales personnel and community managers what they need to know and what to say to close home sales in this post SAFE Act world. Sales people will learn how to navigate the tricky waters of the SAFE Act exclusions and the related activities of advertising, marketing, steering, and in dealing effectively with outside and captive lenders.

In a single day, you will learn exactly how to close prospective buyers legally and effectively, while learning valuable insights into the thinking of the underwriters who approve and turn down their customers for loans.

All of this is done with a combination of educational techniques proven to be both effective and practical. We start by teaching the background and meanings of the laws and regulations, then follow up with specific strategies and solutions that allow them to sell using credit without violating any laws. There are question and answer sessions at the end of each segment, and, when appropriate, live-time role playing by each participant under the guidance of our experienced personnel.

You’ll learn from nationally recognized instructors:

  • Ken Rishel
  • Donna Rishel, CCO
  • Dennis Ohnstad
  • Bill Carr, RainMaker
  • John Ace Underwood
  • Ed Hicks
  • Chad Carr, RainMaker

For more details, click here to download an informational pdf about the seminar, or call 217-899-9268 to register.