U.S. Senate Passes Bill Giving Industry Relief
from the Dodd-Frank Act
Yesterday, the U.S. Senate passed legislation clarifying that a manufactured housing retailer or seller is not 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. MHI worked closely with Senator Joe Donnelly (D-IN), author of the Preserving Access to Manufactured Housing Act (S. 1751) and long-time supporter of manufactured housing, to include this important consumer access provision from his bill in the legislation which passed the Senate. The legislation passed with bipartisan support by a vote of 67 to 31.
The passage of S. 2155 by the Senate is a result of MHI's longstanding efforts to protect manufactured housing retailers and sellers from being liable under federal consumer protection mortgage rules for the loan portion of a consumer transaction. As long as a retailer or seller does not receive compensation or gain related to the loan, they are not considered a loan originator simply because they help the borrower in identifying potential lenders or provide minimal assistance in the loan process.
MHI’s government affairs team worked diligently on Capitol Hill with Senate leadership 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 3,000 calls/emails – was instrumental in helping Senators understand the importance of this provision to their constituents. These efforts also helped to prevent an amendment offered by Senator Ron Wyden (D-OR) to strike this language from the bill from being considered during floor debate.
U.S. Senator Joe Donnelly said, "For many hard-working Hoosiers and Americans, manufactured housing provides the most affordable option available when they look to buy a home. I'm pleased the bipartisan regulatory relief legislation that I helped craft and that passed the Senate Banking Committee includes a provision based on my Preserving Access to Manufactured Housing Act (S. 1751). This measure would help prevent federal regulations from getting in the way of financing that families need as they step into homeownership."
During Senate debate, Senators Pat Toomey (R-PA) and Thom Tillis (R-NC) each delivered powerful and persuasive statements about the importance of manufactured housing as an affordable housing option and urged their colleagues to support this important bill.
The manufactured housing provision contained within S. 2155 was supported by the National Association of REALTORS® (NAR) and the Mortgage Bankers Association. In its letter to the Senate, NAR’s President Elizabeth Mendenhall stated, “In many areas of the country, manufactured homes are the best option for quality affordable housing. REALTORS® support clarifying that manufactured home retailers and salespersons are not loan originators.”
The inclusion of this language in the Senate's financial regulatory relief package is the result of MHI's persistent efforts. In addition to the Senate regulatory reform package, H.R. 1699, the Preserving Access to Manufactured House Act, which includes a similar provision to S. 2155, was passed by the U.S. House of Representatives on December 1. This language was also passed as a part of the House's financial reform package (H.R. 10) in June. In September, the House also passed the bill's provisions as a part of its Fiscal Year 2018 Appropriations package.
The House and Senate will next need to work together to reconcile differences between the House and Senate regulatory relief bills, in order to agree on identical language, so that a bill can be sent to the President for his signature and enactment into law.
Community Update Topics: