Mortgage Licensing
On August 29, 2011, U.S. Department of Housing and Urban Development (HUD) issued their final interpretation on the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008, better known as the SAFE Act (click here). As a result of this interpretation the PA Department of Banking’s Secretary, Glenn Moyer, issued an interpretive letter on October 6, 2011 (click here) advising the lending industry in the Commonwealth, including those who sell and finance manufactured Homes, on how the HUD regulation would impact PA MLA activities.
PMHA was able to meet with PA Banking to discuss the HUD regulations and how they may be helpful in giving the manufactured housing industry further relief from onerous licensing requirements. While there is still much to work out we were successful in getting Banking to confirm that members who have done “seller financing” in the past are permitted to do so again with minimum licensing requirements if they do not exceed 3 finance transactions in a calendar year.
In accordance with the second paragraph on page 2 of the Secretary’s letter, the Department will allow retailers/communities to seller finance up to 3 manufactured homes per calendar year “without being licensed as a mortgage originator.” Note this only removes the requirement for mortgage licenses. If you wish to engage in “seller financing” as a retailer, or for manufactured homes located in land lease communities, you will still be required to hold an installment sellers license and conduct the activity in accordance with the Motor Vehicle Sales Finance Act.
If you wish to do more than 3 finance transactions in a calendar year then you must have an installment seller’s license, partially exempt mortgage registration and the required mortgage originators licenses.
ACT 1 - 2010
Governor Corbett signed HB 377 into law April 25, 2011. Act 1 which is effective immediately, removes the sprinkler mandate for residential homes and reforms the way the PA Construction code is adopted.
Key Provisions are:
- Permanently repeals the Sprinkler mandate for one and two family dwellings.
- Provides protection of lightweight floor systems with ½” drywall, 5/8” plywood or equivalent, and establishes exceptions for mechanical chase areas as well as exempts floors built with 2x10 or greater dimensional lumber and those systems built over crawlspaces without fuel fired appliances.
- Requires builders to offer sprinkler systems to buyers at the point of sale and provide them with information on the cost of the system as well as information from the State Fire Commissioner’s website on the benefits of installing an automatic sprinkler system. (Sample form, which we recommend that you use for modular homes as well a HUD homes, is available to PMHA Members at no cost, contact Linda 888-242-7642 or linda@pmha.org)
- Provides energy efficiency trade-offs for log home manufacturers and builders to help them meet today’s energy requirements.
- Replaces the 2009 wall-bracing provisions with the 2006 provisions.
- Provides retroactivity for those homes with permits issued between January 1, 2011 and April 25, 2011. Note: If they elect to not have sprinklers they would have to meet the fire floor protection requirement.
- Ends automatic adoption of building codes proposed by the International Code Council (ICC).
- Requires a two-thirds vote of the Review and Advisory Council (RAC) for the adoption of any new code provision to be included in the UCC as opposed to the previous majority or 10 members.
- Requires RAC to conduct at least 3 public hearings; one in Harrisburg, one in the eastern region of the state and one in the western region to provide better opportunities for public input.
- Establishes a position on RAC for a Commercial General contractor, currently held by a sprinkler contractor.
- The RAC shall be required to consider technical feasibility and economic impact as well as health, safety, public welfare, when considering a code provision for adoption.
- Gives the Secretary of Labor and Industry the power to veto any code provision adopted by the RAC based on certain criteria.
How Does this Affect Factory Built Homes?
Since manufactured homes are not a UCC-regulated structure, they are exempt from the fire floor protection requirements. This exemption will include HUD homes placed on basements. In light of Act 1, Labor & Industry has lifted the advisory pertaining to sprinkler requirements in basements of manufactured homes.
Even though HUD homes are exempt from the fire floor protection we strongly encourage retailers to have their customers purchasing an new home to sign the required papers accepting or rejecting a sprinkler system. This is due to the fact that HUD remains firm with their position that fire sprinklers are not addressed in the HUD code therefore are not protected by preemption.
Modular homes will be required to comply, however, modulars built to the 2006 IRC or the 2009 IRC (prior to January 1, 2011) and currently being used as a display home will be exempt from the fire floor protection since they were built and certified under a previous code.
ACT 261 CHANGES
The MOST SIGNIFICANT CHANGES IN 34 YEARS WAS SIGNED BY GOVERNOR RENDELL WENT INTO EFFECT MARCH 18, 2011.
Act 80 (HB 2212) effects everyone in the manufactured housing land lease community business. Some of the major changes are:
- MANDATORY LEASES FOR EVERYONE
- RENT MAY ONLY BE INCREASED ONCE IN ANY 12 MONTHS
- CONSUMER DISCLOSURES ARE REQUIRED FOR EVERY LESSEE AND PROSPECTIVE RESIDENT
- MANDATORY FIVE DAY RIGHT TO RESIND AFTER RECEIPT OF DISCLOSURES
- ADDITIONAL REQUIRED NOTICES TO DISPLAY
These changes will require you to completely re-think your management policies and procedures. And will provide you with an opportunity to improve your current methods of working with Lessees and other individuals living in your community.
The revised Act 261 has not yet been published in the final form, however, we have spent a lot of time revising current forms and disclosures and gathering support materials based on these changes. Click
here for a copy of Act 261 as amended by Act 80 - 2010.
The original language of HB 2212 and HB 1201 was far more onerous for not only manufactured housing community owners, but their residents as well. Tom Bown, a PMHA member of over thirty years and owner of communities in PA, DE and OH, is providing 100% of the forms and procedures used in his operation. These are available for purchase in paper form and/or digital form for PMHA members only.
Members may purchase the Manufactured Housing Community Management Tool Kit for $100. Click
here for the order form.
The PA Perspective (newsletter) is now available electronically!
Emailed to Members Only! Member of PMHA? Want the PA Perspective electronically?
Email
Tracy and request to be added to the list.
WHEELS NOT INCLUDED
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World renown artist Bruce Johnson calls his whimsical carefree art "Statements" So who could better depict the industry that has been making a statement since the dawn of time?
From the retail center with its drive-in lending office to the factory and its myriad air hoses and hydraulic lifts and the toter taking the home out the back door to the community on the hill, Bruce has captured the industry in all of its glory. The story of the industry from start to finish is done in a light-hearted fun... can you believe this... remember when approach. |
Wheels Not Included is perfect for every retail center's reception room, every community's lobby, every manufacturer's front office. A great gift for the GM that has everything and the line- w orker who is re tiring.
Wheels Not Included is the best present anyone in the industry can ever receive!
PMHA only had a limited number of prints created. Each print is signed and numbered by the artist on acid-free paper. Prints are $125 unframed and are shipped within two-weeks of receiving the order. Discounts on 25 or more prints shipped to the same location are available. Prints will be shipped in a mailing tube. The price of $125 includes shipping/handling and tax.
Professionally framed prints are available for only $260 - for more information on framed prints or to place an order contact
Linda at PMHA (888) 243-7643.
New Member Benefit:
Affiliated Power Purchasers International, LLC (APPI), is the endorsed independent energy consulting firm for the PMHA. APPI manages the Powerful Solutions Program which provides electricity procurement and natural gas management services for commercial and industrial users of energy. The APPI Powerful Solutions Program is available to all PMHA members and is designed to reduce and manage your energy costs with no upfront cost to you. To learn more, visit APPI’s website at
www.appienergy.com