Bill Overview
Title: Fair Manufactured Housing Lending Act
Description: This bill requires a manufactured or modular home retailer to comply with consumer mortgage protections, including those related to lending origination and conflicts of interest.
Sponsors: Rep. Bonamici, Suzanne [D-OR-1]
Target Audience
Population: Individuals purchasing manufactured or modular homes
Estimated Size: 22000000
- Manufactured or modular home retailers are required to comply with consumer mortgage protections, indicating that the main target population are people who purchase or intend to purchase manufactured or modular homes.
- Manufactured homes can be more affordable than traditional homes, thus individuals with lower to middle income brackets might be more likely to be affected by this legislation.
- The legislation aims to protect consumers during the lending process, so the target population includes current and prospective manufactured home buyers who require financing.
- As the bill addresses conflicts of interest and lending origination, it will affect consumers who are financing their home purchase through retailers.
Reasoning
- When considering the population affected by the Fair Manufactured Housing Lending Act, it is crucial to include a diverse range of profiles that match the demographic often associated with manufactured homes.
- Approximately 22 million Americans reside in manufactured homes, pointing towards a mix of low to middle-income individuals.
- To remain within budgetary constraints, the policy initially focuses on regions with higher concentrations of such homes, such as the Southern and Midwestern United States.
- The policy aims to provide consumer protection, which is most beneficial to individuals who rely heavily on financing when purchasing homes.
Simulated Interviews
Retail Manager (Texas)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I think this policy will make the loans more transparent and trustworthy.
- The buying process was confusing to me, anything that simplifies it is welcome.
- My main worry is that oversight might make it harder to qualify for a loan.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Construction Worker (Florida)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I'm not sure how much this will affect us but knowing more about loans would be good.
- I hope this doesn't mean more hurdles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 4 |
Tech Startup Employee (California)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- Consumer protection is always a plus, especially when it comes to loans.
- I'm mainly interested in knowing it will give us fair loan options.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Factory Worker (Ohio)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 15/20
Statement of Opinion:
- I'm all for policies that protect us from tricky loan terms.
- Hope this policy doesn't raise home prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
Retired (Alabama)
Age: 59 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- For someone on a fixed income, knowing loans are fair is relieving.
- I hope this helps future buyers more than me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Engineer (Nevada)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 13/20
Statement of Opinion:
- I'm curious if this will affect the interest rates offered to me.
- More protections sound good, fewer surprises.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Teacher (Michigan)
Age: 45 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- I want to be sure I'm not getting ripped off by lenders.
- If this policy adds clarity, I support it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Administrative Assistant (North Carolina)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 12.0 years
Commonness: 16/20
Statement of Opinion:
- More regulations mean fairer play for homeowners, I believe.
- I hope these rules will make for easier understanding of loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Unemployed (Kentucky)
Age: 54 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 10/20
Statement of Opinion:
- Protections sound great.
- I am still wary of dealing with retailers for financing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Freelancer (Oregon)
Age: 26 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 11/20
Statement of Opinion:
- Policies that prevent buying traps are vital.
- Manufactured homes seem like an affordable step, this protection is appreciated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $4000000 (Low: $2500000, High: $6000000)
Year 3: $3000000 (Low: $2000000, High: $5000000)
Year 5: $2000000 (Low: $1500000, High: $3000000)
Year 10: $1000000 (Low: $500000, High: $2000000)
Year 100: $500000 (Low: $250000, High: $1000000)
Key Considerations
- Initial implementation and compliance monitoring will incur costs but are expected to decrease once systems are in place.
- Consumer protection benefits largely outweigh potential startup costs in the long term.
- The impact on the GDP and tax revenue is expected to be beneficial in the long term despite initial adjustments.