Committee Provides Dodd-Frank Relief

Relief from Dodd-Frank

Senate Banking Committee Draft Gives Manufactured Home Retailers Dodd-Frank Relief

The Senate Banking Committee released a bipartisan agreement to provide Dodd-Frank relief by redefining the role of a manufactured housing retailer/seller. New language shows the dealer/retailer is not considered a “loan originator”.

Previous language associated the roles simply because dealer/retailers provide a customer with assistance in the mortgage loan process.

This is a key tenet of the Preserving Access to Manufactured Housing Act, which excludes manufactured housing retailers and sellers from the definition of loan originator so long as they are only receiving compensation for the sale of a home.

The Manufactured Housing Institute has urged lawmakers to re-define the relationship, just as a real estate agent’s sales commission under current law does not make her a loan originator.

Manufactured home retailers and sellers are in the business of selling homes and have no involvement in loan origination. They currently are at risk of being considered mortgage loan originators. Loan originators must comply with licensing or qualification requirements unrelated and irrelevant to manufactured home retailers and sellers.

Dodd-Frank Relief


MHI Works Toward Dodd-Frank Relief

The committee agreement affirms MHI’s position that current language is inappropriate for a manufactured housing retailer.

The language was a part of a bipartisan regulatory reform package drafted by Senate Banking Committee Chairman Mike Crapo (R-ID). A bipartisan group of nine Republicans and nine Democrats cosponsored the measure.

The provision is in Section 107 of the package, which is within the title of the bill dealing with improving consumer access to mortgage credit. Specifically, Section 107 amends the Truth in Lending Act (TILA) to exclude from the definition of “mortgage originator” an employee of a retailer of manufactured or modular homes who does not receive compensation or gain for taking residential mortgage loan applications while maintaining consumer protections.

Senator Joe Donnelly (D-IN), author of the Preserving Access to Manufactured Housing Act (S. 1751) and long-time supporter of manufactured housing, strongly advocated for inclusion of this important consumer access provision in the package.

New Language Complements Recent Actions

The Senate’s bipartisan reform package should be considered by the Senate Banking Committee within weeks. MHI will continue working with the sponsor and authors of the package as it moves through the legislative process.

The inclusion of new language in the Senate’s financial regulatory relief package is the result of MHI’s persistent efforts. The institute wants to ensure changes in Preserving Access to Manufactured Housing are passed into law as soon as possible.

In addition to the Senate regulatory reform package, the full Preserving Access to Manufactured House Act was passed as a part of the House’s financial reform package (H.R. 10) in June. In addition, the House in September passed the bill’s provisions as a part of its Fiscal Year 2018 Appropriations package.

This communication was contributed to MHVillage by MHI. Contact MHI’s Government Affairs Department at (703) 229-6208 or with any questions about Dodd-Frank relief.

Update on Dodd-Frank Relief

The United States House of Representatives is expected to vote next week on H.R. 1699, the Preserving Access to Manufactured Housing Act. 

Please contact your Representative and ask them to vote in favor of H.R. 1699, the Preserving Access to Manufactured Housing Act. 

Click here and follow the simple steps on MHI’s website to correspond with your Representative on this important matter. An email to your Representative has already been composed. All you have do is insert your home address and click submit!

Please give this your immediate attention and send it along to others in your organization and everyone else you know in the industry urging them to do the same.