WASHINGTON – A bipartisan group of lawmakers is looking to amend a lending provision that classifies certain types of loans used to purchase manufactured housing as predatory.

Reps. Stephen Fincher, R-Tenn., Bennie Thompson, D-Miss., and Gary Miller, R-Calif., introduced the Preserving Access to Manufactured Housing Act on Friday. The bill would adjust thresholds for high-cost loans under the Home Ownership and Equity Protection Act to exclude some lending for mobile home purchases. The Consumer Financial Protection Bureau has issued guidelines, which go into effect in 2014, on what types of loans can be considered high-cost and predatory under the law, “without recognizing the uniqueness of manufactured home loans compared to the rest of the housing industry,” according to a press release. The bill would also clarify that certain sellers of manufactured housing are not considered loan originators unless they are paid by a lender, mortgage broker or loan originator.

Most mobile home loans are limited to personal property loans, which tend to be shorter term and carry a higher interest rate. Bankers and mortgage lenders tend to avoid making the loans because they can’t be sold to Fannie Mae or Freddie Mac.

“This legislation is vital. It protects the availability of financing for manufactured homes that many families across the country rely on for affordable housing,” Fincher said in the release.

A companion bill is expected to be introduced in the Senate in coming weeks.

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