FHA Manufactured Housing Loan Modernization Act Of 2006

July 26, 2006
U.S. House of Representatives

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 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.