The House passed legislation yesterday to modify regulations for home mortgages established in the 2010 Dodd-Frank Wall Street overhaul, The Hill reported today. H.R. 650, passed 263-162, would alter the definition of "high cost" mortgages for mobile homes, also known as manufactured housing. The bill would allow the first mortgage on a principal home to be exempted from a "high cost" classification if the annual percentage rate (APR) isn't more than ten percent of the average prime offer rate; if the transaction doesn't total more than $75,000; and if the mortgage points and fees paid aren't more than $3,000. Rep. Steven Fincher (R-Tenn.), the bill's sponsor, argued that current mortgage regulations from the Consumer Financial Protection Bureau made it difficult for low-income Americans to obtain mortgages for mobile homes. The White House issued a veto threat against the bill, arguing it would allow lenders to raise the cost of loans even if consumers cannot afford to repay them. Another bill (H.R. 658) passed 286-140, would exclude the cost of title insurance from points and fees on loans. It would also establish that funds held in escrow for property insurance payments aren't considered points and fees.
