June 6, 2007, Arlington, Va. ? The Manufactured Housing Institute (MHI), the national trade association for the manufactured and modular housing industries, fully supports the recent comments of U.S. Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson at the National Press Club, officially launching June 2007 as National Homeownership Month. Jackson stressed that while homeownership is near an all-time high of 70 percent, HUD is committed, through its incentives and programs, to assist in affordable housing and homeownership opportunities for more Americans.
As part of its activities supporting National Homeownership Month, MHI President Gail Cardwell will be accompanying Federal Housing Administration (FHA) Commissioner Brian Montgomery on a tour of a manufactured housing facility in Texas this month. The Commissioner will see first-hand the important role that manufactured and modular housing plays in bringing quality, affordable homes to the housing market place. MHI will also be participating in a special FHA anniversary celebration at HUD headquarters on June 27.
Approximately 22 million people live in 10.5 million manufactured and modular homes across the nation. Manufactured and modular homes are one of the largest sources of non-subsidized, affordable housing in the country. Owners of manufactured and modular homes benefit from the economies of scale resulting from home manufacturers purchasing large quantities of materials, products, and appliances, with these savings passed on directly to the homebuyer. Technological advances are also allowing manufactured home builders to offer a much wider variety of architectural styles and customized housing options.
MHI also supports HUD Secretary Jackson?s comments calling for reform of the FHA loan insurance programs to make them more responsive and affordable.
?MHI fully supports H.R. 2139, reform legislation intended to revive the FHA Title I insurance program for home-only loans,? stated MHI President Gail Cardwell. ?The FHA Title I program is in major need of reform. The 2006 level of manufactured home loans insured under the Title I insurance program is only 5 percent of its level in 1992, the last year loan limits were raised. The absence of Title I activity in recent years has greatly hindered manufactured home sales to deserving American families.?
To revive this program, the legislation would: raise the Manufactured Home Title I loan limits for the first time since 1992 and annually index them for inflation; give the U.S. Department of Housing and Urban Development (HUD) the authority to increase insurance premiums and improve underwriting standards to ensure the program is actuarially sound; allow borrowers to finance their upfront mortgage insurance premium; and re-align the insurance system more closely to the FHA Title II system, particularly the loan-by-loan insurance feature.
H.R. 2139 was successfully voted out of the House Financial Services Committee and now awaits a vote by the full U.S. House of Representatives. This legislation was introduced by Rep. Joe Donnelly (D-Ind.) and is co-sponsored by Financial Services Committee Chairman Barney Frank (D-Mass.), as well as Reps. Tom Feeney (R-Fla.) and Pat Tiberi (R-Ohio).
?We greatly appreciate the support and leadership of Financial Services Committee Chairman Barney Frank,along with the leadership of Reps. Donnelly, Feeney and Tiberi in sponsoring this important legislation,? MHI Chairman Barry McCabe stated. ?This legislation can help revive a major funding source of affordable housing for many Americans.?
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