Issue link: https://read.dmtmag.com/i/303813
MAY 2014 13 THE JOURNAL Warner bill would only have permitted the se- curitization of "residential real estate loans" – thereby excluding chattel loans. With the MHARR amendment, the new Johnson-Crapo version of S.1217 now defines a "residential real estate loan" to include "any real estate mortgage loan; personal property loan secured solely by the home itself" and/or any "hybrid land-home loan" for a "manufactured home" as defined by the 2000 reform law. Second, the Johnson-Crapo bill incorporates MHARR's amendment language word-for- word in a new "Market Access Fund" that would promote affordable housing, including "manufactured homes purchased through real estate and personal property loans and manu- factured homes used as rental housing." If enacted by Congress, these changes would benefit industry members and manufactured housing consumers for decades to come by: • Establishing a basis, in law, once and for all, for the equal status of manufactured homes and all types of manufactured home loans with all other housing loans; • Establishing a basis, in law, for the indus- try or consumers to challenge – if necessary -- any type of continuing consumer finance dis- crimination; and • Establishing a basis, in law, for the equal participation of manufactured homes, manu- factured housing consumers and all types of manufactured housing loans in the new afford- able housing programs that would be created by the Senate bill. And, unlike the "PATH" bill in the House, which would eliminate any federal guarantee and privatize all risk of loss, the bi-partisan Senate bill combines a significant federal guar- antee with a "risk sharing" 10% first-loss posi- tion for institutions that make use of its programs and facilities to protect both the fed- eral government and taxpayers from a repeat of the 2008 credit crisis and the Fannie Mae/Fred- die Mac federal bailout -- confirming the Sen- ate bill as the vehicle of choice at this time for manufactured housing amendment language. Over the coming months, MHARR will work diligently to ensure that these manufac- tured housing amendments remain in the Sen- ate bill and to advance the ultimate passage of appropriate GSE reform legislation. It goes without saying that a massive bill such as this, with far-reaching consequences and a multitude of stakeholders, is extremely difficult to navi- gate through Congress to final passage and sig- nature by the President. Regardless of what happens going forward, though, the ice has been broken and the die has been cast, and for the first time, new model language for the full inclusion of manufactured housing in any future GSE reform or housing finance legislation has been created. That said, the prospects for the success of these industry amendments will be greatly enhanced with the full support of the in- dustry and consumers. In MHARR's view, the inclusion of clear, definitive and mandatory manufactured hous- ing language in S. 1217 is an important break- through for the industry and consumers, but also the first step in a much longer journey to finally establish the full equality of manufactured housing and the homebuyers its serves. Danny D. Ghorbani is President & CEO of the Manufactured Housing Association for Regulatory Reform. MHARR is a Washington, DC-based na- tional trade association representing the views and interests of independent producers of federally-regu- lated manufactured housing. Danny can be reached at 202-783-4087. D D D No. 9 on Get It Quick Page T J Don't miss the June Issue of THE JOURNAL! This will be our New Homes Edition. Manufactured and Modular manufacturers will show off their new models. Photo courtesy of MHE