Issue link: https://read.dmtmag.com/i/72467
MHI FOCUS Advocating for Removal of Burdensome and Unnecessary Regulations BY Richard "Dick" Jennison One of the key roles of most national trade associations, like MHI, is to advocate at the federal level on its members' behalf on issues and policies that directly impact their day-to- day operations and long-term viability in the marketplace. Sometimes that advocacy can be very public, or more likely, quiet and "behind the scenes" visiting with key Congressional leaders and their staff. Responding to a request from Rep. Darrell Issa (R-CA), chairman of theHouseOversight and Government Reform Committee,MHI re- sponded by advocating on its members' behalf for the removal or modifi- cation of recent legislation and resulting regulations that pose significant threats to our industries. MHI's comments to facing the manufactured housing industry, could have significant negative consequences for low- and moderate-income families seeking to purchase affordable manufactured housing. Specifically, MHI seeks policy action that would: 1) Minimize the burdensome new Home Ownership and Equity Protection Act's (HOEPA) high-costmortgage standards placed on manufactured housing. Unless regulations developed by the CFPB adequately recognize the cost pressures and challenges of lending in the manufactured housing market, where con- specific concern to the manufactured housing industry, the ability of lenders to recoup fixed costs associated with origination of small-sized manufactured home loans. A lack of clarity and consideration in these areas could serve as a sig- nificant disincentive to serving the credit needs of manufactured home buyers. 3) Eliminate conflicting federal mortgage One of the key roles ofmost national trade associations, like Chairman Issa, who is leading an effort to exam- ine federal regulations that hinder job growth, fo- cused on threemajor areas of regulatory reform: regu- lations emanating fromthe CFPB and Dodd-Frank legislation; the Manu- factured Housing Construction and Safety StandardsAct, administered byHUD; and pro- posed regulations authorized by the Energy In- dependence and SecurityAct of 2007. To view the letter, please visit www.manufactured- housing.org/webdocs/mhiissaletter.pdf. Dodd-Frank Regulations As to the implications of CFPB and Dodd- Frank legislation, MHI stated that there are several provisions that, unless regulations de- veloped by the Consumer Financial Protection Bureau (CFPB) recognize the unique challenges JULY 2012 14 THE JOURNAL MHI, is to advocate at the federal level on itsmembers' behalf on issues and policies that directly impact their day-to-day operations and long-term viability in the marketplace. Sometimes that advocacy can be very public, or more likely, quiet and "behind the scenes" visitingwith key Congressional leaders and their staff. sumer access to credit is already significantly limited, the ability for low- and moderate-in- come families to purchase affordable manufac- tured homes will be further curtailed. 2) Reduce the uncertainly in Dodd-Frank's newly defined "QualifiedMortgage" guidelines. This definition of "qualified mortgage" is char- acterized as a mortgage that has complied with "ability to repay" requirements and conforms to underwriting and fee guidelines prescribed in Dodd-Frank. Unfortunately, there is substan- tial uncertainty over the level of legal protec- tion provided to qualified mortgages and, of origination standards. Dodd-Frank establishes a definition of a "mortgage originator" that is po- tentially inconsistent with existing federal defi- nitions, most notably the SAFE Act. Multiple definitions and standards for mortgage origina- tion are confusing to the industry, consumers and regulators alike. A clear and consistent standard – one that recognizes the unique activities of those involved in the manufactured home sales process – will en- sure a level playing field for all in the residential mortgage market. 4) Establish realistic valuation methods for manufactured housing. Appraisal methods outlined in Dodd-Frank for certain types of mortgages are based on a method designed to value site-built homes that have little applicability to manufactured hous- ing. The HUD-Code Program and Consensus Committee On the issue ofHUD'sManufacturedHous- ing Program and its Consensus Committee ap- proach to rulemaking, MHI pointed out that when the Congress passed the Manufactured Housing ImprovementAct (MHIA) in 2000, it