Representatives Bonamici and Garcia Introduce Legislation to Improve Lending Practices for Buyers of Manufactured Housing

Congresswoman Suzanne Bonamici (D-OR) was joined by Congressman Jesús “Chuy” Garcia (D-IL) in introducing the “Fair Manufactured Housing Lending Act” in the U.S. House of Representatives on April 7. The bill aims to protect those who purchase manufactured homes from predatory practices.

Manufactured housing is an attractive option for individuals and families because of its affordability. Yet there are few financing options or safeguards afforded to consumers. The bill would close a loophole in the “Truth in Lending Act” that makes buyers of manufactured housing susceptible to predatory lending practices by exempting manufactured housing retailers from the definition of “mortgage originator.” Under the Truth in Lending Act, mortgage originators are prohibited from steering consumers to certain lenders or receiving unfair compensation based on loan transactions. The current exemption for manufactured housing retailers has allowed the industry to become overrun by predatory lenders, putting owners of manufactured homes at risk.

NLIHC has endorsed the bill. Other endorsing organizations include the National Consumer Law Center (on behalf of its low-income clients), Prosperity Now, National Housing Law Project, Public Citizen, Americans for Financial Reform Education Fund, National Association of Consumer Advocates, Center for Responsible Lending, National Manufactured Home Owners Association, Consumer Action, CASA of Oregon, Network for Oregon Affordable Housing, All Parks Alliance for Change (APAC), Manufactured Home Federation of MA. Inc (MFM), Manufactured Home Owners’ Association of NJ, Inc. (MHOA-NJ), Manufactured Housing/Oregon State Tenants Association - MH/OSTA, Network for Oregon Affordable Housing, and Nevada Association of Manufactured Home Owners, Inc.

Read a press release about the bill here.

Find more information about the bill here.