HR 3849 protects against the loss of some 20,000-25,000 jobs, promotes new jobs as a
modest industry rebound is underway and protects the home values of some 9-10 million
residents of 4.4 million pre-HUD Code mobile and manufactured homes. In brief,
here below are some facts and why this bill is needed.
First, this bill has bi-partisan support.
Further, Barney Frank’s office has advised the Manufactured Housing Institute (MHI)
that he will not oppose changes to SAFE and Dodd-Frank, as they recognize that the
unintended consequences of the law currently will adversely impact millions of home
owners and cause about about half of all new personal property lending to vanish.
60% of all Manufactured Housing loans today are personal property (home only, or socalled
‘chattel’ loans). The cost of originating and servicing a personal property loans is
about the same for a $30,000 home loan as a $230,000 house loan. So it is clear that
the business math means that a low dollar value loans will not be economically viable
for a lender – and thus won’t be made – once Dodd-Frank is fully implemented by the
Consumer Financial Protection Bureau (CFPB).
This means current home owners with low value homes will watch their home’s value
plunge, and/or will limit their resale options should they need or desire to refinance,
move or sell.
Since every new manufactured home built represents one full time job, the failure to
pass the bill will cost 20,000 to 25,000 jobs, and will hamper manufactured housing’s
current recovery, which is creating new jobs.
Testimony before Congress has underscored these points, that perhaps half of all personal
property loans will vanish once Dodd-Frank and SAFE are fully implemented.
This means that 4.4 million mobile homes (defined here as a style of factory built homes
constructed on or before June 14, 1976 that are shipped on a permanently attached
frame) and manufactured homes (defined under federal law as factory-built homes built
to the federal HUD Code that went into effect on June 15, 1976) with a value under
$30,000 will be adversely impacted.
The vast majority of those millions of threatened home owners don’t yet know of the
looming impact, but should Congress fail to act, they will no doubt discover this reality
that hard way.
Thus the need for Congress to act as rapidly as possible to avoid the above consequences
is necessary. Thank you for your support of this bi-partisan effort.
SOURCE: Manufactured Home Marketing Sales Management http://www.mhmarketingsalesmanagement.com/downloads/alerts/4.8.2012%20HR%203849%20Preserving%20Access%20to%20Manufactured%20Housing%20Act.pdf




