I 112th CONGRESS 2d Session H. R. 3849 IN THE HOUSE OF REPRESENTATIVES January 31, 2012 Mr. Fincher (for himself, Mr. Donnelly of Indiana, and Mr. Gary G. Miller of California) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide an exception from the definition of loan originator for certain loans made with respect to manufactured homes, to amend the Truth in Lending Act to modify the definition of a high-cost mortgage, and for other purposes.

1.

Short title

This Act may be cited as the Preserving Access to Manufactured Housing Act.

2.

Modifications to definitions

(a)

Loan originator definition

Section 1503(4) of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5102(4)) is amended— (1)in subparagraph (A)— (A)in clause (iii), by striking and at the end; (B)in clause (iv), by striking the period and inserting ; and; and (C)by adding at the end the following new clause: (v)does not include an individual or entity that is a seller of manufactured homes unless such individual or entity is engaged in the business of a loan originator or receives compensation or gain for engaging in activities described under clause (i) that is in excess of any compensation or gain received in a comparable cash transaction. ; and (2)by adding at the end the following: (E)

Engaged in the business of a loan originator

For purposes of this paragraph, the term engaged in the business of a loan originator means to perform loan originator activities described under subparagraph (A)(i) as a regular course of trade or business in exchange for compensation or gain paid solely for engaging in the sale or distribution of residential mortgage loans. . (b)

High-Cost mortgage definition

Section 103(bb)(1)(A)(i) of the Truth in Lending Act (15 U.S.C. 1602(bb)(1)(A)(i)), as added by section 1431 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended— (1)in subclause (I)— (A)by striking (8.5 percentage points, if the dwelling is personal property and the transaction is for less than $50,000); and (B)by striking or at the end; (2)in subclause (II), by adding or at the end; and (3)by adding at the end the following: (III)by a first mortgage on a consumer’s principal dwelling that is considered personal property (or is a consumer credit transaction that does not include the purchase of real property on which a dwelling is to be placed), the annual percentage rate at consummation of the transaction will exceed the average prime offer rate, as defined in section 129C(b)(2)(B), for a comparable transaction, by more than— (aa)8.5 percentage points, in the case of a transaction in an amount of $50,000 or more, but less than $75,000 (as such amounts are adjusted by the Bureau to reflect the change in the Consumer Price index); (bb)10.5 percentage points, in the case of a transaction in an amount of $30,000 or more, but less than $50,000 (as such amounts are adjusted by the Bureau to reflect the change in the Consumer Price index); or (cc)such percentage points, above those described under item (bb), as the Bureau shall prescribe, in the case of a transaction that is in an amount of $30,000 or less (as such amount is adjusted by the Bureau to reflect the change in the Consumer Price Index); .