Representatives Bonamici and Garcia Introduce “Fair Manufactured Housing Lending Act”

Representatives Suzanne Bonamici (D-OR) and Jesus G. “Chuy” García (D-IL) introduced the “Fair Manufactured Housing Lending Act” in the U.S. House of Representatives on July 12. The act would help protect manufactured homebuyers from predatory lending practices. Current law exempts any retailer of manufactured housing from the category of “mortgage originator” established in the “Truth in Lending Act,” which prohibits mortgage originators from favoring certain lenders or receiving unfair compensation based on local transactions. As a result of this exemption, the manufactured housing industry is rife with predatory lending practices, putting manufactured homebuyers and owners at risk of being pushed toward more expensive lenders. The “Fair Manufactured Housing Lending Act” would repeal this exemption to protect manufactured homebuyers from these practices. NLIHC has endorsed the legislation.

“Predatory lenders should not be able to take advantage of people buying and financing a manufactured home,” said Representative Bonamici in a press release for the bill. “The ‘Fair Manufactured Housing Lending Act’ will restore buyer safeguards for manufactured housing lending at a time when we desperately need more affordable housing in our communities. We must put an end to unscrupulous practices of sellers and provide manufactured homebuyers with the consumer protections they need when they purchase a home.”

“A home should mean safety and financial security, but predatory home loans prey on those who can least afford it,” said Congressman García. “Owners of manufactured housing deserve the same rights and protections as every other homeowner, and it’s time to repeal the loophole that leaves them open to exploitation. I’m proud to introduce this bill with Congresswoman Bonamici to do just that.”

Learn more about the bill at:

Read the press release for the bill at: