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Manufactured Home Personal Property Loans – Are They Predatory? Are CFPB Regulations Helping or Harming Consumers and Home Owners?

Beyond confusion on finance related issues, there are many myths and misunderstandings about modern manufactured housing.  Among these are:

> that MH is somehow more vulnerable to wind storms (that’s not true, as the first video below features a preview that will blow that false impression away).

> That manufactured home’s lower prices are achieved by cutting corners on the quality of materials.  That’s false.  Its economies of scale, less waste, time and labor savings plus strict federal oversight that combine to yield improved quality, with savings that the U.S. Census Bureau states make contemporary manufactured homes about ½ the cost of a similar sized conventional, on-site built house.  The facts are demonstrated in the video interview with an expert that’s linked here.  This consumer-based report, demonstrates that the satisfaction level of today’s MH buyers is very high.

> That manufactured homes are less energy savings than conventional on-site built housing. That's false.  Because manufactured homes (MH) are built on jigs in a controlled environment, they are tighter and thus more energy saving size-for-size with identical insulation levels and features - apples-to-apples – in conventional single family housing.  The article linked here on that topic is helpful.

> The National Fire Prevention Association (NFPA) study should extinguish the now outdated myth that manufactured homes are more fire-prone than site built homes. Modern MH is safer vs. fire than conventional homes today.  Older pre-HUD Code "mobile homes" - of which no more mobile homes have been built since June 15, 1976 - were more vulnerable to the flames, but today's MH are safer by design.  See the report and key highlights, linked here.

We could go step-by-step through a host of old myths replaced by contemporary MH realities. Dispelling errors is what MHLivingNews.com has focused on for some years, while MHProNews challenged errors in media reports like The Daily Yonder story on financing or OZY Media's low blow, agenda laced 'reporting' on MH.   

But our focus today is on manufactured home chattel financing.  We’ll take an in depth look at the impact of CFPB regulations on:

  • consumers seeking to buy,
  • and MH home owners that may want to sell. 

That and more are covered in the video below, with a widely respected MH lending expert.

Growing Need for Affordable Housing & Critical Need for Manufactured Home Financing

The above facts are comparatively easy to outline.  By far the single most difficult issue for many to properly understand is MH lending. 

With the video below, we resume a planned, periodic series of video interviews with MH hopme owners, professionals and lending experts.  This Inside MH video report will feature award winning Marty Lavin, JD.

As you will see, Marty is passionate about consumer safeguards.  He is equally focused on making sure that the facts about MH personal property - aka chattel or ‘home only’ lending, vs. land home or mortgage loans – by the MH finance industry are accurately reflected and understood.

The video that follows is an in depth discussion. It’s intended for a more accurate understanding of the facts and issues about MH lending and related regulatory policies.  We anticipate that:

  • Congressional and Senate staffs,
  • public policy advocates,
  • regulators at the CFPB or other federal and state agencies,
  • industry professionals,
  • investors,
  • the mainstream media,
  • educators and non-profits

are among those who will find this video interview compelling, timely and relevant.

While a lot of ground is covered in under 25 minutes, this video - nor any other of this length - is going to be exhaustive.  For the serious researchers on these MH finance issues, additional insights on this topic are found in the articles linked after the four numbered bullets that follow.

We’ve studied these issues from four key perspectives.  Please note that the following 4 bullets are not necessarily in any order of importance:

  • 1. Impact of current CFPB regulations on MH Home Owners, notably those with homes priced under $20,000.
  • 2. The impact of current regulations on MH Home shoppers, not only those priced under $20,000, because all are impacted by the MLO rule discussed in the video.
  • 3. Impact of CFPB regulations on current MH businesses; lenders, sellers, communities, builders, suppliers – all are directly or indirectly impacted by these regulations.
  • 4. Policy advocates, public officials and the media.  There are widespread misunderstandings and outright demonstrable errors that are addressed in the video shown and in the articles that follow.

Additional Resources and References in understanding MH Lending and Related Regulatory issues

For those who seek a comprehensive understanding of this issue, the following articles are provided for additional depth on this issue; which is vital to supporting improved access to America’s most quality and affordable housing option.

thehill.com/blogs/congress-blog/economy-budget/248665-regulations-for-manufactured-home-loans – the article linked above has extensive cross links to additional sources that document the various statements.

http://manufacturedhomelivingnews.com/renters-nation-the-dark-side-of-dodd-frank-and-its-impact-on-affordable-housing/  The headline summarizes it well, and the narrative is compelling, provided by an award-winning journalist.

http://manufacturedhomelivingnews.com/dodd-frank-and-manufactured-home-financing-the-place-where-good-intentions-and-unintended-consequences-collide/  This was the first article by award-winning, “depth consumer affairs” journalist Jan Hollingsworth on the topic of MH lending. The facts, charts and a home buyer’s stunning odyssey presented by Hollingsworth broke new ground in media coverage, aiding a better understanding of MH lending.

http://manufacturedhomelivingnews.com/she-black-hes-white-theyre-in-different-parties-why-congressional-representatives-terri-sewell-and-andy-barr-support-preserving-access-to-manufactured-housing/  MH lending reforms has bi-partisan support, as the article demonstrates.

http://manufacturedhomelivingnews.com/cfed-and-cfpb-confused-conflicted-friends-of-manufactured-home-owners-and-prospective-buyers/   Part of the resistance to MH lending comes from a source that has a clear conflict of interest on this issue.

http://manufacturedhomelivingnews.com/congressman-stephen-fincher-is-demanding-fairness-for-rural-americans-in-manufactured-homes-the-hill-oped/ Congressman Fincher’s reason for sponsoring HR 650, the House bill that has already passed; pending the upcoming vote on S 682, the companion bill to HR 650 that is pending a vote in the U.S. Senate.

http://manufacturedhomelivingnews.com/sam-landy-umh-ceo-on-dodd-frank-and-the-preserving-access-to-manufactured-housing-act-s-682hr-650/ - This video interview and the related article confirms many of the assertions that finance expert and attorney Marty Lavin has made in the video above.

http://manufacturedhomelivingnews.com/impact-of-cfpb-loan-regulations-on-the-lowest-cost-manufactured-and-mobile-home-owners/ - this is the first video interview with an MH home owner, who wants to see her home’s values protected from the harmful impact of current CFPB regulations.##

latonyKovach-Louisville-2015-mhpronews-com-275x156-11By L. A. “Tony” Kovach.

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