House Supports Change to ‘Loan Originator’ Definition in Senate Bill 2155

Senate Bill 2155

Passage of Senate Bill 2155 Eases Concerns of Retailers, Operators Who Want to Assist Customers in the Mortgage Loan Process

Yesterday, the U.S. House of Representatives passed Senate Bill 2155, which contains language clarifying the role of “loan originator”.

The new language states a manufactured housing retailer or seller is not a “loan originator” Senate Bill 2155simply because they provide assistance in the mortgage loan process.

This provision was included in Senate Bill 2155 — the “Economic Growth, Regulatory Relief, and Consumer Protection Act”. The bill contains reforms intended to improve the national financial regulatory framework and promote economic growth.

White House Must Sign Senate Bill 2155 for Change to Take Place

House approval and passage of 2155 by the Senate in March means the legislation heads to the President’s desk for signature.

The passage of 2155 by the House is a result of the Manufactured Housing Institute, the nation’s lone trade group for manufactured housing, and its ongoing efforts to protect manufactured housing retailers and sellers from liability under federal consumer protection mortgage rules for the loan portion of a consumer transaction.

MHI contends a retailer or seller cannot fit the definition if there is no compensation or gain related to the loan.

The organization’s government affairs team works closely with both Congressional leadership on Capitol Hill and champions of manufactured housing to secure passage of this important provision. More than 15,000 calls and emails were made to Washington.

Grassroots outreach from MHI members and state executive directors were instrumental in helping Members of Congress understand the importance of this provision to their constituents.

Reaction to Passage of Senate Bill 2155

Upon passage of the bill, U.S. Representative Andy Barr (R-KY), long-time supporter of manufactured housing and author of the Preserving Access to Manufactured Housing Act (H.R. 1699), said, “Dodd-Frank’s one-size-fits-all ‘loan originator’ definition failed to account for the unique nature of the manufactured housing market. The result: hard-working, low and moderate income Americans have lost access to affordable manufactured housing.

The Preserving Access to Manufactured Housing Act, included in Senate Bill 2155, fixes this problem and enables more Americans to achieve the American Dream of homeownership.” View Representative Barr’s remarks here.

During House debate, Representative French Hill (R-AR) highlighted the manufactured housing provision contained in 2155, arguing that the provision, “will help hundreds of Arkansans –  hardworking families who need access to credit for manufactured housing in rural parts of the state.”

This provision passed with strong bipartisan support in both the House and the Senate. On March 14th, the Senate passed Senate Bill 2155 by a vote of 67 to 31. Tuesday, the House passed this same bill today by a vote of 258 to 159.

Language in the larger regulatory reform bill was made possible by MHI’s extensive and successful efforts over the last few years in getting a similar provision included in three previous House-passed bills (H.R. 1699, H.R. 10, and an FY 2018 appropriations bill), as well as a freestanding Senate manufactured housing bill (S. 1751).

Please contact MHI’s Government Affairs Department with any questions at (703) 229-6208 or