Volume Buyers

Keeping you informed and updated!

Joint Investigation

Warren Buffett and his holdings in the manufactured housing industry have been in the news lately and none of it has been positive.  While congress is trying to roll back some of the tight regulations brought forth from the Dodd-Frank act, house Democrats are calling for a joint investigation from the Department of Justice and the Consumer Financial Protection Bureau.  Whether Democrats are truly targeting Berkshire-Hathaway’s subsidiaries Clayton Homes, Vanderbilt Mortgage, and 21st Mortgage over predatory lending allegations or if Democrats are simply attempting to demonstrate the importance of Dodd-Frank during debates we cannot be certain, however, allegations do exist.

The allegations surrounding Clayton Homes and its lending partners are of discriminatory lending toward low to moderate income minorities. Clayton customers have Reported to The Seattle Times saying they were, “misled into high cost loans they could not repay”.  Legislators are looking for the involvement of the CFPB because predatory lending practices, especially practices involving racial discrimination, would be a violation of the Dodd-Frank Act, the Equal Credit Opportunity Act, and the Fair Housing Act.

Clayton has not had much commentary on this matter but has said that their lending affiliates Vanderbilt Mortgage and 21st Mortgage are strictly monitored by both State and Federal regulators and that they offer lending products to a wider range of credit scores and due to their wider credit score acceptance they service loans for low to moderate income minorities at a higher density than their competitors.  Clayton also stated that for borrows with a credit score lower than 600 the average note rate was the same for both whites and non-whites.

Sam Gilford of the CFPB said allegations of predatory lending are concerning but declined to say if there were plans to open an investigation.

January 19, 2016 Posted by | General Information | , , , , , , , , , , , , | Leave a comment

Mortgage Discrimination

Our in house finance consultant, DeAnna Trask, was passing an article around the office about mortgage denial for women on maternity leave. Click here for the article. I found the article very interesting and I didn’t think it had been an issue in the past but, this year there have been 16 incidents with at least three institutions. Some cases the lenders either denied the loan all together or stopped working on it. On October 9th, HUD settled with Wells Fargo for $5 million, which is the largest settlement of its kind.

“Wells Fargo settled with HUD to resolve allegations that it discriminated against pregnant women, women on maternity leave, or women who recently gave birth by making loans unavailable based on sex and familial status; or by forcing women applicants to sacrifice their maternity leave and return to work prior to closing on their loans; and by making discriminatory statements to and against women who were pregnant or who had recently given birth.”  Click here to read the whole article.

One of the biggest problems regarding this type of discrimination is the lack of education.    The changes to Dodd Frank, the SAFE act and other federal law changes have greatly impacted and regulated our industry.  Tyna-Minet Anderson, vice president at Mortgage Educators and Compliance, said that underwriters and mortgage insures do not take the same training which many lead to a knowledge gap and fair lending.  HUD reported 30 cases of discrimination in 2010, 40 in 2011, 50 in 2012, and 40 in 2013.

I asked DeAnna to give us some insight on what we can do as dealerships to protect our deals and customers.  Here is what she had to say:

As a dealer, if you have a customer that is pregnant, you need to be aware of how this has worked in the real world.  If you’re doing an end loan, you could run into special underwriting guidelines that only pertain to women on maternity leave.   If the woman goes out on maternity leave before the deal is closed, an underwriter could do the following:

  1. Refuse to count her income because she is on leave, effectively declining the loan.
  2. Refuse to acknowledge that being on family medical leave does not mean that you’re unemployed.
  3. Decline the loan altogether and make them resubmit when she goes back to work.
  4. Or, put the loan on hold until she is back to work and has 30 days of paystubs.

All of these actions have been standard practice in the past.  However, all of these actions violate the Fair Housing Act of 1968.

October 16, 2014 Posted by | Financial Information | , , , , , , , , , , , , | Leave a comment

The Truth in Lending Act

TILABeginning on June 1st, 2013, The Truth in Lending Act or TILA ban on mandatory arbitration provisions in certain mortgage loans became effective.  This has effected applications received on or after the June 1st deadline.

Under this ban, lenders using the loan documentation that contains such requirements will be required to remove them for loans covered.

Now make sure you note that this bans does implement a provision of the Dodd-Frank Act.  The provision bans “terms that require arbitration or any other non-judicial procedure to resolve any controversy or settle any claims arising out of the transaction.”

Lenders using loan documentation that contains such requirements will be required to remove them for loans covered under the ban. The ban implements a provision of the Dodd-Frank Act that bans “terms that require arbitration or any other non-judicial procedure to resolve any controversy or settle any claims arising out of the transaction.”

There is more detailed information here about the regulations, Regulation Z, and additional links for more resources on this news.

July 2, 2013 Posted by | Legislation | , , , , , , , , , , , | Leave a comment

MHI Weighs in on CFPB Housing Finance Proposed Rules

MHI or the Manufactured Housing Industry has worked to represent the concerns of our industry over the past few months in response to a number of proposed housing finance rule makings.  These proposals were release by the Consumer Financial Protection Bureau or CFPB.

A previous article mentioned that, “MHI is concerned that a number of new regulations currently being developed by the CFPB could further limit access to and the availability of credit in the already finance-constrained manufactured housing market. In addition to efforts to amend the Dodd-Frank law through legislative measures in the House and Senate (H.R. 3489 & S. 3484), MHI is actively advocating the industry’s concerns before key staff at the CFPB.”

The next section highlights some of the most significant rules that MHI has the most concern with.  MHI wants you to know that, “MHI staff is working to ensure final rules adequately reflect the price sensitivities and unique challenges inherent to the manufactured housing market.”

(The following is from the MHI news wire.  The information is quite important so please read further)…

Appraisal Requirements for Higher-Risk Mortgages

Implements Dodd-Frank provisions that an appraisal (including a physical inspection of the interior of a home) be conducted on homes with mortgages considered “higher-risk.” Under the law, qualified mortgages (QMs) would be exempt from the “higher-risk mortgage” definition and thereby exempt from appraisal requirements. In general, if the loan is not a QM and has an APR that is 1.5 percentage points over prime, it is considered “higher-risk.” Based on input from MHI, the rules proposed by the CFPB and others would exempt any loan “solely secured by a residential structure,” such as manufactured homes, from the higher-risk mortgage definition. Based on the unique difficulties of appraising manufactured homes, MHI is working to expand this definition to include any manufactured home loan secured by real property.

Click here to view the proposed rule.
Click here to view MHI’s comments.
Click here to view a summary of the appraisal proposed rule.

Equal Credit Opportunity Act Amendments— Requires creditors to provide consumers free copies of all written appraisals and valuations developed in connection with an application for a mortgage. The proposal would require creditors to notify applicants in writing of the right to receive a copy of each written appraisal or valuation at no additional cost. With respect to new manufactured homes, most lenders develop a maximum loan amount based on the manufactured home’s invoice price. In the proposed rule, the CFPB indicates that “valuations such as manufacturer’s invoices for mobile homes” would not be considered a “written appraisal or valuation” and would not have to be provided to consumers by lenders. In addition, publicly available valuation lists (such as published sales prices or mortgage amounts, tax assessments and retail price ranges) are not items considered that must be provided to consumers.

Click here to view the proposed rule.
Click here to view MHI’s comments.

HOEPA High-Cost Mortgage Revisions — Dodd-Frank expands the types of mortgages subject to the protections of the Home Ownership and Equity Protection Act (HOEPA); revises and expands the triggers for coverage under HOEPA; and imposes additional restrictions on HOEPA “high-cost mortgage” loans, including a pre-loan counseling requirement. Because the fixed costs (such as servicing and origination) and the lack of secondary market access, low balance manufactured home loans are particularly susceptible to classification as high-cost under the revised HOEPA guidelines. Due to liabilities associated with a high-cost/HOEPA mortgage, lenders will not originate these loans—potentially further stifling the availability of credit in the manufactured housing market. MHI has urged the CFPB to significantly broaden the APR and origination points thresholds that define HOEPA high-cost loans and ensure that fewer low-balance manufactured home loans are captured by triggers that currently do not fully account for the price pressures in the manufactured housing market.

Click here to view the proposed rule.
Click here to view MHI’s comments.

Loan Originator Compensation Rules —Implements changes made by Dodd-Frank to Regulation Z’s current loan originator compensation provisions, including a new additional restriction on the imposition of any upfront discount points, origination points, or fees to consumers under certain circumstances. The rule implements a very narrow exemption for manufactured housing retailers to “exclude employees of a manufactured home retailer who assists a consumer in obtaining or applying to obtain consumer credit, provided such employees do not take a consumer credit application, offer or negotiate terms of a consumer credit transaction, or advise a consumer on credit terms (including rates, fees, and other costs).” Unfortunately, the provision provides no meaningful relief to the industry.

MHI has maintained the position that the exemption for manufactured home retailers should be based upon the compensation received in the home sale. If the compensation received is no greater than what the retailer would have received in an all-cash transaction, then the individual retailer/seller should not be considered a loan originator. Unless clarifications are made, MHI is concerned that lenders may be forced to consider sales commissions earned by a manufactured home retailer as compensation and gain for purposes of calculating a loan’s APR or points and fees. This may cause the loan to fail the test for a “qualified mortgage” or a HOEPA/high-cost mortgage.

Click here to view the proposed rule.
Click here to view MHI’s comments.

RESPA & TILA Mortgage Servicing Guidelines – The rules implement Dodd-Frank provisions regarding mortgage loan servicing. Specifically, this proposal implements Dodd-Frank sections addressing initial rate adjustment notices for adjustable-rate mortgages (ARMs), periodic statements for residential mortgage loans, and prompt crediting of mortgage payments and response to requests for payoff amounts. The proposed rule would provide an exemption to small servicers—defined as those that service 1,000 or fewer mortgage loans and service only mortgage loans that they originated or own—for the periodic statement requirements.

Click here to view the RESPA proposed rules.
Click here to view the TILA proposed rules.
Click here to view MHI’s comments.
Click here to view a summary of the new servicing requirements.

For more information, contact MHI Vice President of Government Affairs Jason Boehlert at  jboehlert@mfghome.org.

November 21, 2012 Posted by | Financial Information | , , , , , , , , , | Leave a comment

MHI’s 2012 Annual Meeting!

MHI’s 2012 Annual Meeting will be held at the Hotel Contessa in San Antonio, TX on October 7-9, 2012. Click here to register now and save $100. The early-bird hotel and registration fee deadline is September 7th which is coming up soon.

MHI has been working long and hard to hopefully amend the SAFE and Dodd-Frank Acts.  The laws, “threaten to limit the ability of consumers to obtain mortgage financing for manufactured homes and the ability of manufactured home retailers and sellers to provide home-buyers with adequate information to make an informed purchase decision or provide basic information about available lending options.”

Thankfully, progress has been made by the Preserving Access to Manufactured Housing Act, (S. 3484 and H.R. 3849), in the Senate and House of Representatives.  At the Annual Meeting there will be continued work on MHI’s priorities that which include a strategy to pass S. 3484 and H.R. 3849, CFPB regulatory implementation of Dodd-Frank and SAFE Acts; GSE reform and the government’s role in housing; and energy issues.

This year’s highlights include:

  • Initiatives & issues discussions on the recent legislation
  • Featured speakers
  • Information on the upcoming elections and health care reform
  • Special awards presentations, and so much more!

Please contact Cheryl Langley at 703-558-0668 or cheryl@mfghome.org for meeting information and sponsorship opportunities. Click here for a list of sponsorship opportunities.

MHI thanks the following members for their generous sponsorship of MHI’s Annual Meeting:

Gold Sponsors

  • Cavco Industries, Inc.
  • Hart, King & Coldren
  • Style Crest, Inc.
  • Triad Financial Services, Inc.

Silver Sponsors

  • Assurant Specialty Property
  • CU Factory Built Lending
  • follettusa
  • Manufactured Housing Insurance Services
  • McGlinchey Stafford PLLC
  • SSK Communities
  • T.R. Arnold & Associates
  • U.S. Bank

Make your plans today to attend MHI’s 2012 Annual Meeting!

September 6, 2012 Posted by | Events | , , , , , , , , , , , | Leave a comment

Manufactured Housing Finance Relief Legislation Unveiled

This post is from an email via The Manufactured Home Industry.  This email is so important that I decided to post it word-for-word because it is quite important to our industry and could have not said it better myself.  *Note it is quite a lengthy post but important.


(Arlington, VA – February 1, 2012) – “During a hearing of the Financial Services Subcommittee on Insurance, Housing and Community Opportunity evaluating the effectiveness to which the Department of Housing and Urban Development (HUD) has implemented key provisions of the Manufactured Housing Improvement Act of 2000, Rep. Gary Miller (R-CA) formally unveiled legislation (H.R. 3849) to reduce regulatory burdens impeding access to affordable manufactured housing financing”.

“In detailing challenges facing the manufactured housing industry, Congressman Miller cited a number of difficulties the industry has suffered over the past decade, including: a decline in new manufactured home construction of roughly 80 percent; the closure of more than 160 plants; and the loss of over 200,000 jobs.  He specified that “Congress must address the problems with regulatory overreach that impedes the ability of consumers to obtain mortgage financing for manufactured homes.”

The bill (titled the Preserving Access to Manufactured Housing Act) was developed on a bipartisan basis by Reps. Joe Donnelly (D-IN), Stephen Fincher (R-TN) and Gary Miller, in consultation with the Manufactured Housing Institute (MHI), to address two significant issues impacting the manufactured housing industry:

  • Reducing the threshold by which small balance manufactured home personal property loans are considered High-Cost Mortgage Loans under provisions within the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) and thereby subject to punitive and onerous liabilities.
  • Clarifying that those selling manufactured homes—who are not fundamentally engaged in the business of mortgage origination —are not to be considered mortgage originators under the federal SAFE Act and thereby better able to provide adequate technical assistance to consumers throughout the manufactured home buying process—similar to the SAFE Act treatment of real estate brokers.

Upon introduction of the legislation, MHI Chairman and Cavco Industries Chairman and CEO Joe Stegmayer stated “we are truly grateful for the dedicated leadership and work of Representatives Joe Donnelly, Stephen Fincher and Gary Miller on this very important issue.  Serving the financing needs of the manufactured housing market has always been a unique challenge.   It has grown more challenging by the establishment of new federal guidelines that do not adequately account for the complexities and realities facing the industry and consumers alike. The legislation is an essential step in preserving the affordability advantage of manufactured housing and protecting the equity that 19 million existing manufactured home residents have built in their homes.”

During the hearing, several members of the subcommittee reaffirmed the important role manufactured housing plays as an affordable, high quality housing source and the need for improved access to financing, including Rep. Robert Hurt (R-VA) who stated that the manufactured housing industry has been “hindered by a lack of financing availability.”  Rep. Sean Duffy (R-WI) highlighted the valuable role manufactured housing plays as an “important source of affordable housing” that is “threatened by a lack of financing options.”

In his testimony, Cavco Industries Director of Engineering Manuel Santana, P.E. – testifying on behalf of MHI – reinforced these points and stated that “the single most important issue impacting the manufactured housing market remains the availability of accessible and affordable financing for those seeking to purchase manufactured housing.”  Mr. Santana added that “lack of a viable secondary market for manufactured home loans coupled with growing regulatory burdens threaten to further constrict the limited financing options that currently exist within the manufactured housing market.”

MHI will continue to work on a bipartisan basis to educate Members of Congress and develop solutions to the financing crisis within the manufactured housing market.  For a copy of the legislation, click here.  A description of the bill’s impact on SAFE Act and the Dodd-Frank Act is available here.

MHI is the preeminent national trade association for the manufactured and modular housing industries, representing all segments of the industry before Congress and the Federal government. From its Washington, D.C. area headquarters, MHI actively works to promote fair laws and regulation that will help provide quality, affordable housing for homebuyers. For more information on MHI, visit www.manufacturedhousing.org.

February 10, 2012 Posted by | Legislation | , , , , , | Leave a comment

2012 MHI Legislative Conference

There are many new legislators in Congress thanks to last year’s election.  That is why we are asking you to share how important our industry is to “the health of the economy and housing Americans” in 2012.  Everything that happens in D.C. can and most likely will shape our industry throughout 2012.

By attending MHI’s February 2012 Legislative Conference you presence and voice will be heard.  This meeting will be critical in reaching out to the members of the 112th Congress on issues of that are of great importance to our industry which include the following:

  • Dodd-Frank Financial Reform
  • EISA Standards
  • SAFE Act
  • The future role of government’s support of affordable housing programs
  • Vital industry tax credits
  • Increased oversight of the federal manufactured housing program

Get your voice heard and make sure the correct people are listening to you about how important our industry is in this economy.  Sponsorship opportunities are available here.  Check out the following registration deadlines which expires on Jan. 26th, 2012:

December 29, 2011 Posted by | Events | , , , , , , , | Leave a comment

The New York Housing Association’s 61st Annual Convention

Get ready for The New York Housing Association’s 61st Annual Convention from October 12th & 13th, 2011 at the Turning Stone Resort.  Senator Catherine Young (R,C,I) 57th Senate District will be on hand to address the attendees.   “Her committee on Housing, Construction and Community Development works to develop legislation to help revitalize communities; assist families in buying and preserving their homes; and create safe , affordable rental housing”.

The convention will allow for the 61st annual meeting to elect the 2012 Officers, approve the 2012 Association Budget and examine possible changes to the Association Bylaws.  There will also be a TradeExpo through-out the convention that will have vendors and suppliers displaying their goods and services.

Some of the following will be apart of the breakout sessions:

  • National Issues Perspective, including the SAFE Act & Dodd-Frank Update (by Thayer Long)
  • How to Dominate Your Market Area (by Tony Kovach)
  • Worker’s Compensation – All You Need to Know (by Heather Dougherty)
  • Well Water Compliance – New Requirements (by Jamie Herman)
  • Association and Recent Changes to the NYS Building & Energy Codes (by Timothy King)
Please feel free to contact Nancy Geer at (800.721.4663)
with any questions or additional details.

August 19, 2011 Posted by | Events | , , , , , , , , , , , , | Leave a comment

The Dodd-Frank Act and Manufactured Housing

July 21st is soon approaching and that means change is coming to multiple industries.  The Bureau of Consumer Financial Protection (CFPB) “will officially assume its oversight position over the nation’s banking and financial system without an official director in place” (MHI News).

How is this important?  The Dodd-Frank Act gives the CFPB the permission to oversee non-bank financial firms which can and most likely will impact the manufactured housing industry.  Although, the agency is prohibited from starting to oversee non-bank financial firms (places that provide for example student, payday and mortgage loans) without a confirmed director.

To add more confusion and controversy to the act, Republican members of the Senate “have indicated they would place a hold on any nominee to head up the agency until substantive changes impacting the governance and operations of the CFPB are made” (MHI News).

It will be an interesting week for this specific act and in the Senate.  We will keep you posted as we obtain information and developments.


M. Cicardi

July 20, 2011 Posted by | Legislation | , , , , , , | Leave a comment