Bipartisan bill makes it easier to get mortgages for manufactured homes

The U.S. House advanced a bill last week that relaxes federal lending rules for manufactured homes.

The Preserving Access to Manufactured Housing Act, sponsored by Rep. Andy Barr (R-KY), address guidelines issued by the Consumer Financial Protection Bureau (CFPB) to expand the range of loan products considered high-cost mortgages under the Home Ownership and Equity Protection Act (HOEPA).

The CFPB guidelines were put in place to protect manufactured homeowners from predatory lenders.

The small-balance loans used for the purchase of affordable manufactured housing could be classified as high-cost, which results in increased lender liabilities, opponents of the rule said. That could lead to a loss of credit availability for those seeking to purchase manufactured housing.
“Under the CFPB’s regulations, many small-balance manufactured home loans are now being considered ‘high-cost.’ This means many people – particularly those with lower and moderate incomes who want to buy a manufactured home – are not able to buy that home. Their access to credit is being unfairly restricted through no fault of their own,” Rep. Jeb Hensarling (R-TX) said.

Barr said the CFPB rule is harming consumers – not protecting them. He said this “bipartisan and common sense” legislation will make it possible for more families to own a home.

The bill passed in the House by a vote of 256-163.