[Congressional Record (Bound Edition), Volume 152 (2006), Part 12]
[House]
[Pages 15721-15725]
[From the U.S. 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

[[Page 15722]]

       (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 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

[[Page 15723]]

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.
  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

[[Page 15724]]

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.
  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. 
Manufactured 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 current portfolio cap that only allows

[[Page 15725]]

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.

                          ____________________