[Congressional Record Volume 152, Number 99 (Tuesday, July 25, 2006)]
[House]
[Pages H5731-H5734]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FHA MANUFACTURED HOUSING LOAN MODERNIZATION ACT OF 2006
Mr. GILLMOR. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4804) to modernize the manufactured housing loan insurance
program under title I of the National Housing Act, as amended.
The Clerk read as follows:
H.R. 4804
SECTION 1. SHORT TITLE.
This title may be cited as the ``FHA Manufactured Housing
Loan Modernization Act of 2006''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) manufactured housing plays a vital role in providing
housing for low- and moderate-income families in the United
States;
(2) the FHA title I insurance program for manufactured home
loans traditionally has been a major provider of mortgage
insurance for home-only transactions;
(3) the manufactured housing market is in the midst of a
prolonged downturn which has resulted in a severe contraction
of traditional sources of private lending for manufactured
home purchases;
(4) during past downturns the FHA title I insurance program
for manufactured homes has filled the lending void by
providing stability until the private markets could recover;
(5) in 1992, during the manufactured housing industry's
last major recession, over 30,000 manufactured home loans
were insured under title I;
(6) in 2004, fewer than 2,000 manufactured housing loans
were insured under title I;
(7) the loan limits for title I manufactured housing loans
have not been adjusted for inflation since 1992; and
(8) these problems with the title I program have resulted
in an atrophied market for manufactured housing loans,
leaving American families who have the most difficulty
achieving homeownership without adequate financing options
for home-only manufactured home purchases.
(b) Purposes.--The purposes of this Act are--
(1) to provide adequate funding for FHA-insured
manufactured housing loans for low- and moderate-income
homebuyers during all economic cycles in the manufactured
housing industry;
(2) to modernize the FHA title I insurance program for
manufactured housing loans to enhance participation by Ginnie
Mae and the private lending markets; and
(3) to adjust the low loan limits for title I manufactured
home loan insurance to reflect the increase in costs since
such limits were last increased in 1992 and to index the
limits to inflation.
SEC. 3. EXCEPTION TO LIMITATION ON FINANCIAL INSTITUTION
PORTFOLIO.
The second sentence of section 2(a) of the National Housing
Act (12 U.S.C. 1703(a)) is amended--
(1) by striking ``In no case'' and inserting ``Other than
in connection with a manufactured home or a lot on which to
place such a home (or both), in no case''; and
(2) by striking ``: Provided, That with'' and inserting ``.
With''.
SEC. 4. INSURANCE BENEFITS.
(a) In General.--Subsection (b) of section 2 of the
National Housing Act (12 U.S.C. 1703(b)), is amended by
adding at the end the following new paragraph:
``(8) Insurance benefits for manufactured housing loans.--
Any contract of insurance with respect to loans, advances of
credit, or purchases in connection with a manufactured home
or a lot on which to place a manufactured home (or both) for
a financial institution that is executed under this title
after the date of the enactment of the FHA Manufactured
Housing Loan Modernization Act of 2006 by the Secretary shall
be conclusive evidence of the eligibility of such financial
institution for insurance, and the validity of any contract
of insurance so executed shall be incontestable in the hands
of the bearer from the date of the execution of such
contract, except for fraud or misrepresentation on the part
of such institution.''.
(b) Applicability.--The amendment made by subsection (a)
shall only apply to loans that are registered or endorsed for
insurance after the date of the enactment of this Act.
SEC. 5. MAXIMUM LOAN LIMITS.
(a) Dollar Amounts.--Paragraph (1) of section 2(b) of the
National Housing Act (12 U.S.C. 1703(b)(1)) is amended--
(1) in clause (ii) of subparagraph (A), by striking
``$17,500'' and inserting ``$24,500'';
(2) in subparagraph (C) by striking ``$48,600'' and
inserting ``$68,040'';
(3) in subparagraph (D) by striking ``$64,800'' and
inserting ``$90,720'';
(4) in subparagraph (E) by striking ``$16,200'' and
inserting ``$22,680''; and
(5) by realigning subparagraphs (C), (D), and (E) 2 ems to
the left so that the left margins of such subparagraphs are
aligned with the margins of subparagraphs (A) and (B).
(b) Annual Indexing.--Subsection (b) of section 2 of the
National Housing Act (12 U.S.C. 1703(b)), as amended by the
preceding provisions of this Act, is further amended by
adding at the end the following new paragraph:
``(9) Annual indexing of manufactured housing loans.--The
Secretary shall develop a method of indexing in order to
annually adjust the loan limits established in subparagraphs
(A)(ii), (C), (D), and (E) of this subsection. Such index
shall be based on the manufactured housing price data
collected by the United States Census Bureau. The Secretary
shall establish such index no later than one year after the
date of the enactment of the FHA Manufactured Housing Loan
Modernization Act of 2006.''
(c) Technical and Conforming Changes.--Paragraph (1) of
section 2(b) of the National Housing Act (12 U.S.C.
1703(b)(1)) is amended--
(1) by striking ``No'' and inserting ``Except as provided
in the last sentence of this paragraph, no''; and
(2) by adding after and below subparagraph (G) the
following:
``The Secretary shall, by regulation, annually increase the
dollar amount limitations in subparagraphs (A)(ii), (C), (D),
and (E) (as such limiations may have been previously adjusted
under this sentence) in accordance with the index established
pursuant to paragraph (9).''.
SEC. 6. INSURANCE PREMIUMS.
Subsection (f) of section 2 of the National Housing Act (12
U.S.C. 1703(f)) is amended--
(1) by inserting ``(1) Premium Charges.--'' after ``(f)'';
and
(2) by adding at the end the following new paragraph:
``(2) Manufactured home loans.--Notwithstanding paragraph
(1), in the case of a loan, advance of credit, or purchase in
connection with a manufactured home or a lot on which to
place such a home (or both), the premium charge for the
insurance granted under this section shall be paid by the
borrower under the loan or advance of credit, as follows:
``(A) At the time of the making of the loan, advance of
credit, or purchase, a single premium payment in an amount
not to exceed 2.25 percent of the amount of the original
insured principal obligation.
``(B) In addition to the premium under subparagraph (A),
annual premium payments during the term of the loan, advance,
or obligation purchased in an amount not exceeding 1.0
percent of the remaining insured principal balance (excluding
the portion of the remaining balance attributable to the
premium collected under subparagraph (A) and without taking
into account delinquent payments or prepayments).
``(C) Premium charges under this paragraph shall be
established in amounts that are sufficient, but do not exceed
the minimum amounts necessary, to maintain a negative credit
subsidy for the program under this section for insurance of
loans, advances of credit, or purchases in connection with a
manufactured home or a lot on which to place such a home (or
both), as determined based upon risk to the Federal
Government under existing underwriting requirements.
``(D) The Secretary may increase the limitations on premium
payments to percentages above those set forth in
subparagraphs (A) and (B), but only if necessary, and not in
excess of the minimum increase necessary, to maintain a
negative credit subsidy as described in subparagraph (C).''.
SEC. 7. TECHNICAL CORRECTIONS.
(a) Dates.--Subsection (a) of section 2 of the National
Housing Act (12 U.S.C. 1703(a)) is amended--
(1) by striking ``on and after July 1, 1939,'' each place
such term appears; and
(2) by striking ``made after the effective date of the
Housing Act of 1954''.
(b) Authority of Secretary.--Subsection (c) of section 2 of
the National Housing Act (12 U.S.C. 1703(c)) is amended to
read as follows:
``(c) Handling and Disposal of Property.--
``(1) Authority of secretary.--Notwithstanding any other
provision of law, the Secretary may--
``(A) deal with, complete, rent, renovate, modernize,
insure, or assign or sell at public or private sale, or
otherwise dispose of, for cash or credit in the Secretary's
discretion, and upon such terms and conditions and for such
consideration as the Secretary shall determine to be
reasonable, any real or personal property conveyed to or
otherwise acquired by the Secretary, in connection with the
payment of insurance heretofore or hereafter granted under
this title, including any evidence of debt, contract, claim,
personal property, or security assigned to or held by him in
connection with the payment of insurance heretofore or
hereafter granted under this section; and
``(B) pursue to final collection, by way of compromise or
otherwise, all claims assigned to or held by the Secretary
and all legal or equitable rights accruing to the Secretary
in connection with the payment of such insurance, including
unpaid insurance premiums owed in connection with insurance
made available by this title.
``(2) Advertisements for proposals.--Section 3709 of the
Revised Statutes shall not be construed to apply to any
contract of hazard insurance or to any purchase or contract
for services or supplies on account of such property if the
amount thereof does not exceed $25,000.
``(3) Delegation of authority.--The power to convey and to
execute in the name of the Secretary, deeds of conveyance,
deeds of release, assignments and satisfactions of mortgages,
and any other written instrument relating to real or personal
property or any interest therein heretofore or hereafter
acquired by the Secretary pursuant to the provisions of this
title may be exercised by an officer appointed by the
Secretary without the execution of any express delegation of
power or power of attorney. Nothing in this subsection shall
be construed to prevent the Secretary from delegating such
power by order or by power of attorney, in the Secretary's
discretion, to any officer or agent the Secretary may
appoint.''.
SEC. 8. REVISION OF UNDERWRITING CRITERIA.
(a) In General.--Subsection (b) of section 2 of the
National Housing Act (12 U.S.C. 1703(b)), as
[[Page H5732]]
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new paragraph:
``(10) Financial soundness of manufactured housing
program.--The Secretary shall establish such underwriting
criteria for loans and advances of credit in connection with
a manufactured home or a lot on which to place a manufactured
home (or both), including such loans and advances represented
by obligations purchased by financial institutions, as may be
necessary to ensure that the program under this title for
insurance for financial institutions against losses from such
loans, advances of credit, and purchases is financially
sound.''.
(b) Timing.--Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act,
the Secretary of Housing and Urban Development shall revise
the existing underwriting criteria for the program referred
to in paragraph (10) of section 2(b) of the National Housing
Act (as added by subsection (a) of this section) in
accordance with the requirements of such paragraph.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio (Mr. Gillmor) and the gentlewoman from California (Ms. Waters)
each will control 20 minutes.
The Chair recognizes the gentleman from Ohio.
Mr. GILLMOR. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 4804, the FHA Manufactured
Housing Loan Modernization Act of 2006, which was introduced by my
financial services colleague, Congressman Pat Tiberi.
H.R. 4804 would modernize the Federal Housing Administration title I
program for manufactured homes and increase the availability of FHA
insured manufactured housing loans to low and moderate income consumers
who wish to purchase a manufactured home.
Congressman Tiberi's legislation would amend title I of the Federal
Housing Administration mortgage insurance program by encouraging more
private sector participation in the title I program, increasing the
availability of title I loans for manufactured housing and improving
title I access to the secondary mortgage market.
To accomplish these goals, the FHA Manufactured Housing Modernization
Act of 2006 includes several important reforms to make the title I
manufactured housing program more relevant and more meaningful. The
bill requires FHA to insure title I manufactured housing loans on a
loan by loan basis, similar to what is done in the single-family FHA
program, instead of using the current insurance system which insures
bundles of loans. This change would pose less risk to the secondary
insurer and would encourage the securitization of title I loans.
Since 1992, manufactured home prices have increased over 50 percent
while loan limits have not been adjusted for inflation. To address this
inequity, H.R. 4804 raises the maximum loan limits for manufactured
homes and lots with annual indexing using U.S. Census data.
The manufactured housing industry has evolved in the last decade to
deliver a better quality product that saves as much as 25 percent of
development costs associated with traditional single-family homes.
Recent innovations in design, including multi-stories and attached
garages, make manufactured housing a viable, affordable alternative for
urban developments.
The problem of housing affordability touches many Americans, young
couples with limited incomes, single-parent families and low income
households that seek decent shelter at a reasonable price, or retired
persons looking for smaller homes with less maintenance.
Many American families are unable to afford a medium priced site-
built home. Manufactured housing provides a home ownership option for
people who may not be able to afford or choose not to purchase site-
built housing.
H.R. 4804 will go a long way to ensure that manufactured housing
continues to play an important role in meeting the country's affordable
housing needs. I urge my colleagues to support this important piece of
legislation.
Mr. Speaker, I reserve the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the gentleman from Massachusetts (Mr. Frank) is on his
way to the floor, who really is the manager on this legislation, and
the one person on our side of the aisle who is an expert on
manufactured housing.
I rise in support certainly of the FHA Manufactured Housing Loan
Modernization Act of 2006. I would like to thank Mr. Tiberi, the
sponsor of this bill, for his hard work and cooperation with the
members of the Subcommittee on Housing and Community Opportunity, of
which I am ranking member.
The bill is further evidence of the high level of cooperation on
housing-related issues within the Committee on Financial Services. The
committee marked up this bill that will amend title I of the Federal
Housing Administration mortgage insurance program by encouraging more
private sector participation in the title I program, increasing the
availability of title I loans for manufactured housing and improving
access to the secondary mortgage market.
After the devastating events of last year in the gulf region,
manufactured housing took on a new importance. Manufactured housing
filled a major void in the supply of housing in the aftermath of
Hurricanes Rita and Katrina. FEMA has made trailers available in the
gulf region, and they still represent the only housing choice for many
families who lost their homes.
Manufactured homes continue to serve the housing needs of Americans,
as many in the gulf region would attest. However, since the early
1990s, the number of title I personal property loans for manufactured
homes dropped from 30,000 to 2,000, primarily because of inefficiencies
in the program.
This bill will make a number of improvements to the program: Number
one, it removes the 10 percent cap limiting FHA's ability to insure
manufactured housing; number two, it insures loans on a case-by-case
basis; number three, it increases loan limits; number four, it provides
for risk-based premiums; and, number five, it strengthens loan
underwriting requirements.
The reforms in this bill will improve FHA manufactured housing
programs. The modernization of the program is absolutely essential to
its continued existence. As such, I am not only going to ask my
colleagues to support this legislation, but I would implore the Members
of Congress to look at manufactured housing as alternatives to high-
priced housing in some of their own areas where people cannot afford
housing, particularly low-income people who cannot afford the housing
on the market as we know it.
Mr. Speaker, I reserve the balance of my time.
Mr. GILLMOR. Mr. Speaker, I ask unanimous consent to yield the
balance of my time to the gentleman from Ohio (Mr. Ney) and that he may
be able to yield.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. NEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in support of H.R. 4804, the FHA
Manufactured Housing Loan Modernization Act of 2006. Right off the bat,
I want to congratulate Representative Pat Tiberi from Ohio on his
effort to modernize the Federal Housing Administration, known as FHA,
title I program for manufactured homes and increase the availability of
FHA-insured manufactured housing loans to low and moderate income
consumers who wish to purchase a manufactured home.
Increasing loan limits for manufactured housing will assist many
people, particularly first-time home buyers who are looking for less
expensive options for achieving the dream of homeownership.
Reforms to the title I manufactured housing program in this
legislation would remove the current cap limiting FHA's ability to
insure manufactured home loans to 10 percent of the FHA portfolio;
require FHA to insure title I manufactured housing loans on a loan-by-
loan basis; raise the maximum loan limits for manufactured homes and
lots, with annual indexing using U.S. Census data. It also would allow
risk-based premium pricing and tighten underwriting standards for the
title I loans.
I want to thank our ranking member, Maxine Waters from California,
obviously also our chairman, Mike Oxley and Barney Frank, our ranking
member for the full committee. Their perseverance on these issues is
going to help a lot of people in this country.
[[Page H5733]]
I want to thank again the gentlelady from California, Mr. Frank and
also Mr. Oxley, and, above all, Mr. Tiberi, for pursuing this piece of
legislation, which is going to help so many people.
Mr. Speaker, I reserve the balance of my time.
Mr. FRANK of Massachusetts. Mr. Speaker, I ask unanimous consent to
control the balance of the time on our side.
The SPEAKER pro tempore. Without objection, the gentleman from
Massachusetts will control the balance of the time.
There was no objection.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield myself such time as
I may consume.
Mr. Speaker, I thank my colleague, the ranking member of our Housing
Subcommittee, the gentlewoman from California, for filling in for me as
I came over.
Mr. Speaker, we have a national goal of increasing homeownership.
Homeownership is very important. I always want to make it clear to
people that while homeownership is very important, it should not be
considered all of our goal in the housing area. A large number of
people, for economic reasons and other reasons, will be renters. It is
a good thing if we can help people become homeowners, but we should not
neglect the legitimate interests of renters.
In this case, however, we are talking not about renters, we will deal
with them in some later parts of our program today, we are dealing here
with extending the ability to own homes to people who would
economically not otherwise be able to make it.
We have gotten to a pretty high percentage of homeownership. But if
you look at the economics of land, of zoning, of building, if you look
at what people earn, if we do not make manufactured housing more easily
available to people, we will not be able to break out of the current
percentage levels of homeownership. That is, significantly extending
homeownership so we get to maybe an 80 percent range or so requires us
to make full use of manufactured housing.
One of the things I am pleased about, when I first came here there
was a kind of a war going on, or at least a battle between people of
conventional homes, stick-built homes, as they are called, and
manufactured housing. I think it is now clear that the demand for
housing is such and the economic range is such that these are not
competitive entities. There is room for more of the stick-built
housing, of the site-built housing; there is room for more of the
manufactured housing. We need to give a full range of choices for
people.
It is also clear that manufactured housing hits a price range that we
have to make available if we are going to extend homeownership.
Now, what we found was, as many of us began to push for this a few
years ago, we were pushing, I pushed Fannie Mae and Freddie Mac to do
more in manufacturing housing. The gentleman from Ohio is nodding,
because he and I have worked together on this. We intend to continue.
{time} 1230
Part of our effort with regard to the GSE legislation is to push
Fannie Mae and Freddie Mac to do more in manufactured housing. We have
worked harder to make sure that manufactured housing is safer. And this
goes back to the former chairman of the committee, then called the
Banking Committee, the gentleman from Texas (Mr. Gonzalez) who helped
to make sure that we had legislation that made manufactured housing
safer, particularly in those areas where there are hurricanes. We have
done that.
And then we found that one of our own entities, the Federal Housing
Administration, was not as responsive to the manufactured housing
issues as they should be. So this bill does that. Obviously,
manufactured housing is somewhat different than other forms of housing.
The problem is, of course, our laws, our loan procedures, our property
laws, our title laws were all drawn up with the model of a site-built
home on a piece of land owned by that homeowner.
You need more flexibility when you are dealing with manufactured
housing. This provides it. So I am very pleased to join in this
bipartisanship effort with my colleagues on the committee to put
forward a bill that will be a substantial step forward in making
housing available.
I thank the gentleman from Ohio, the chairman of the subcommittee,
and the gentleman from Ohio who is the main author of this bill for
giving us all a chance to work together on this.
Mr. Speaker, I reserve the balance of my time.
Mr. NEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the gentleman from Massachusetts makes a good point. We
have struggled for quite a few years to get manufactured housing into
the sites through HUD for its utilization for people across this
country. So I think this bill and all of the steps we have taken to
understand both the urban and the rural settings, I think this bill
comes a long way to push it to the forefront.
I want to thank Mr. Tiberi and also to yield to the gentleman such
time as he may consume.
Mr. TIBERI. Mr. Speaker, I am excited that we are here today
considering this piece of legislation that was passed out of committee
unanimously. It has been a bipartisan process from the very beginning.
I believe we have a better bill that Members can support because of
that process, a bill that will make it easier for Americans to be
homeowners. I thank Mr. Frank. As a former realtor, I want to associate
myself with his remarks with respect to the flexibility of this bill,
the importance of this bill. We have come a long way in getting here
today passing this bill.
I do want to acknowledge his valuable input as a cosponsor of the
legislation, a key cosponsor, as well as his work on the Financial
Services Committee, and also his aid Scott Olson. This legislation
today is better because of the work that you all put into it. I really
appreciate and am grateful for that work.
Mr. Speaker, I also want to acknowledge the leadership of Mr. Ney,
chairman of the Subcommittee on Housing, and Chairman Oxley for their
work on this legislation, and the key work of committee staff Clinton
Jones. Clinton, you have been great on this legislation from the very
beginning; Cindy Chetti, Tallman Johnson, Rashmi Puri, along with
Lindsay Vogtsberger from my staff as well. This has been a great
collaboration. I appreciate the full support from the Members and the
committee.
This legislation builds on the past successes of FHA's title I
program by increasing the availability of title I loans for
manufactured housing, encouraging more private sector participation and
increasing access to the ever-important secondary mortgage market.
Manufactured housing has played a critical role in creating
homeownership for families both in urban and rural settings across this
country, across our State in Ohio. Unfortunately, manufactured housing
is in the midst of a downturn, a downturn in housing production levels
due in part to tightening of underwriting standards.
Historically, FHA title I programs have provided loans for financing
mortgages of manufactured homes, which are homes leased on land. In
1992, FHA title I insured over 30,000 loans nationwide. In 2004, the
number fell to 2,000. In Ohio, the chairman's home State and my home
State, loans fell from a high in 1992 of 281, to only 15 written in
2004.
This bill incorporates recommendations from HUD's Commission of
Independent Agency ``Report to Improve the title I Program.'' The
legislation raises the maximum loan limits for manufactured homes on
lots with annual indexing using the U.S. Census data. It also makes a
number of changes, Mr. Speaker, to ensure the financial soundness of
the program by allowing the Secretary of HUD to revise underwriting
criteria.
Furthermore, the Congressional Budget Office estimates that
implementing this piece of legislation will result in savings of half a
million dollars a year.
Mr. Speaker, I am truly proud of the fact that I am the sponsor of
this bill with Mr. Frank and look forward to its passage here in the
House and hopefully passage soon in the Senate so that more Americans
may achieve the American dream of homeownership.
[[Page H5734]]
Mr. FRANK of Massachusetts. Mr. Speaker, I have no further requests
for time, and I yield back the balance of my time.
Mr. NEY. Mr. Speaker, I have no further speakers. I just want to
again thank the gentlewoman from California, Maxine Waters; Mr. Barney
Frank of Massachusetts; Mike Oxley, the Chair; and Pat Tiberi, of
course, the author of the bill.
Mr. FRANK of Massachusetts. Mr. Speaker, will the gentleman yield?
Mr. NEY. I yield to the gentleman from Massachusetts.
Mr. FRANK of Massachusetts. Mr. Speaker, the chairman of the full
committee, the gentleman from Ohio (Mr. Oxley), is, as has been
announced, retiring. I do want to say that I am very proud of the
extent to which our committee has worked together cooperatively.
There are obviously points of difference. There are legitimate
differences between Democrats and Republicans and liberals and
conservatives.
But without subsuming those or without anybody sort of abandoning his
or her principles, we have been able to find that area where there is
common ground like this. I do think that the chairman of the full
committee deserves an enormous amount of credit for creating the
atmosphere in which we were able to both pursue our differences in a
civil way and then come together where we did not have differences, but
had common ground.
Mr. NEY. Mr. Speaker, reclaiming my time, this is a good day for all
people throughout the United States that want to achieve homeownership.
Mr. DUNCAN. Mr. Speaker, I am in strong support of H.R. 4804, the FHA
Manufactured Housing Loan Modernization Act of 2006.
Manufactured homes play an important role in serving housing needs
for many Americans, especially in the district I represent in East
Tennessee.
I am very proud to have a leader in the manufactured housing
industry, Clayton Homes, headquartered in my district. They are a
company of integrity and are now operating in over 40 states across the
country .
More and more people each year are moving into my district, which is
one of the fastest growing areas in the country. I can understand why
so many want to move there. It is a great place to live, raise a family
or start a business.
All of this growth is contributing to a crisis in affordable housing.
Manured home prices have increased over 50 percent since 1992. In 1992
FHA Title I insured over 30,000 Title I loans. In 2004, that number was
below 2,000.
Options for financing manufactured homes are very limited. Today,
there are only two private lenders that participate in the FHA program.
This bill will encourage more private sector participation, creating
more competition with lower interest rates and costs.
The bill increases the amount that can be insured on a loan. It
removes a cent portfolio cap that only allows 10 percent of the dollar
value of the lender's portfolio to be insured.
Under the proposed system in H.R. 4804, a practical program will
encourage more private sector participation and increase accessibility
to manufactured home loans. Making these loans more accessible will
help many get out of a renting situation.
This bill will allow many a chance to own a home, a very important
part of the American dream. I urge my colleagues to support H.R. 4804.
Mr. NEY. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Ohio (Mr. Gillmor) that the House suspend the rules and
pass the bill, H.R. 4804, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. NEY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this question will
be postponed.
____________________