With House Passage of S. 2155, MHI Secures Major Victory for Manufactured Housing Retailers and Sellers
Earlier today, the House of Representatives passed S. 2155, legislation clarifying that manufactured housing retailers are not inappropriately considered mortgage “loan originators” simply because they assist customers in the mortgage loan process. The bill now headed to the President’s desk to be signed into law, and that law is likely to have a positive effect on manufactured home buyers, retailers, lenders, and the industry at large.
The passage of S. 2155 is a result of the ongoing advocacy and outreach efforts of the Manufactured Housing Institute, both in Washington D.C. and across the country. MHI announced the victory in a Housing Alert today — take a look below:
MHI Secures Major Victory for Manufactured Housing Retailers and Sellers
Congress Passes Bill Giving Industry Relief from the Dodd-Frank Act
Today, the U.S. House of Representatives (House) passed legislation clarifying that a manufactured housing retailer or seller is not inappropriately considered a mortgage “loan originator” simply because they provide a customer with some assistance in the mortgage loan process. This provision was included in S. 2155, the “Economic Growth, Regulatory Relief, and Consumer Protection Act,” a package of reforms intended to improve the national financial regulatory framework and promote economic growth. With S. 2155 already passed by the U.S. Senate in March, this legislation is now headed to the President’s desk for signature.
The passage of S. 2155 by the House is a result of MHI’s ongoing efforts to protect manufactured housing retailers and sellers from liability under federal consumer protection mortgage rules for the loan portion of a consumer transaction. MHI has continually argued that if a retailer or seller does not receive compensation or gain related to the loan, they should not be considered a loan originator simply because they help borrowers identify potential lenders or provide minimal assistance during the loan process.
MHI’s government affairs team worked closely with both Congressional leadership on Capitol Hill and champions of manufactured housing to secure passage of this important provision. The grassroots outreach from MHI members and state executive directors – totaling more than 15,000 calls and emails – was instrumental in helping Members of Congress understand the importance of this provision to their constituents.
Upon passage of the bill, U.S. Representative Andy Barr (R-KY), long-time supporter of manufactured housing and author of the Preserving Access to Manufactured Housing Act (H.R. 1699), said, “Dodd-Frank’s one-size-fits-all ‘loan originator’ definition failed to account for the unique nature of the manufactured housing market. The result: hard-working, low and moderate income Americans have lost access to affordable manufactured housing. The Preserving Access to Manufactured Housing Act, included in S. 2155, fixes this problem and enables more Americans to achieve the American Dream of homeownership.” View Representative Barr’s remarks here.
During House debate, Representative French Hill (R-AR) highlighted the manufactured housing provision contained in S. 2155, arguing that the provision, “will help hundreds of Arkansans – hardworking families who need access to credit for manufactured housing in rural parts of the state.”
This provision passed with strong bipartisan support in both the House and the Senate. On March 14th, the Senate passed S. 2155 by a vote of 67 to 31. Today, the House passed this same bill today by a vote of 258 to 159. The inclusion of S. 2155 in the larger regulatory reform bill was made possible by MHI’s extensive and successful efforts over the last few years in getting a similar provision included in three previous House-passed bills (H.R. 1699, H.R. 10, and an FY 2018 appropriations bill), as well as a freestanding Senate manufactured housing bill (S. 1751).