Congressional House Financial Services Committee Directs HUD to Act on SAFE ActRead Time: 1 min
McGlinchey Stafford, on behalf of the Manufactured Housing Institute, met with staffers of the House Financial Services Committee and HUD to discuss the impact of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) on the manufactured housing industry and HUD’s lack of guidance on interpretation and concerns regarding the implementation of the SAFE Act. This meeting resulted in a letter from the US House of Representatives, Committee on Financial Services to the Secretary of the United States Department of Housing and Urban Development.
The July 22, 2010 letter, signed by Representatives Barney Frank and Spencer Bachus raises the impeding implementation date as a significant concern since HUD has not issued a SAFE Act final rule to provide clear guidance whether certain individuals must be licensed. “Given the fact that HUD has yet to publish a final rule addressing implementation of the SAFE Act, HUD should provide prompt and clear guidance for states where there is some debate or uncertainty as to the need for the registration and licensing of certain individuals.”
The letter acknowledges the unique impact on the manufactured housing industry and Congressional concerns that the industry not be “adversely affected” in ways that are inconsistent with the purposes of the SAFE Act. Representatives Frank and Bachus direct HUD to work with NMLS and the states to reduce the licensing, education and testing burden placed on personal property finance lenders and retail sales entities and to allow such entities to sponsor their individuals on NMLS without obtaining additional licenses. HUD is directed to provide guidance to the industry on whether certain activities are administrative or clerical and therefore not covered.
Finally, the letter encourages HUD to consider the establishment of a de minimis standard to exempt seller financed and/or personal investment loan originators making five or fewer loans annually. This exemption would be in line with the federal banking agencies’ draft final rule implementing the SAFE Act.