March/April 2014 MESSAGE FROM THE EXECUTIVE DIRECTOR … · 2016-05-16 · Fair Lending CFPB...

March/April 2014

INSIDE THIS ISSUE

Page

April Round Table Registration 4

2015 Appraisal Requirements 5

Fire Suppression Systems 6

Sandy Aid 6

Mind What You Say and Write 7 National Legislation—Lending 8-11

Page

Tenant Wars 12

2014 Golf Outing Info & Registration 13

More MHI News 17

NJPDES Permit Fees 18

Dodd Frank & Mfd Housing—Brochure 19-23

At the 2014 Legislative Conference and win-

ter meeting hosted by the Manufactured Hous-

ing Institute (MHI) in Washington D.C. Dave

Stevens, President and CEO of the Mortgage

Bankers Association, called 2014 The Year of

Compliance. Much of the discussion among

industry professionals and with legislators on

Capitol Hill focused on compliance with legis-

lation and regulation such as:

QM Rules

National Servicing Standards

LO Comp Rules

HOEPA Triggers

Fair Lending

CFPB Regulations

The industry has to know what its compliance

obligations are and NJMHA has a responsibil-

ity as the state trade association to provide

members with that information. We have de-

cided to re-run the guidance document on

what retailers can and cannot do in their ef-

forts to avoid being deemed a loan originator.

The document originally appeared in our Jan-

uary/February issue and appears here on pages

19-23.

The good news is that the industry,

although small, has gained much attention on

Capitol Hill. During the semi-annual testimo-

ny of Richard Cordray, Director of the CFPB,

to the House Financial Services Committee,

manufactured housing came up multiple times

(see page 17 for more information). You can

help us put pressure on the CFPB to make

changes to regulations that seriously limit

lending opportunities for manufactured home

buyers. Please see pages 8-11 for details.

More good news...Dave Stevens had

some encouraging words for our industry. For

highlights on his talk please see page 16.

Finally, a word of caution, appraisal

requirements are coming in June of 2015.

Please see page 5 to learn more about how this

will affect your business.

MESSAGE FROM THE EXECUTIVE DIRECTOR

Jane Chady

Congressman Leonard Lance and staff members

from the offices of Congressman Holt, Congress-

man Smith, Congressman Garrett, Congressman

Sires and Senator Menendez met with NJMHA

Director Jane Chady on February 11th to discuss

manufactured housing.

March/April 2014 Housing Insight

Housing Insight serves as a medium of exchange of ideas and information on the manufactured housing industry to members. No responsibility is assumed by the

publisher for its accuracy or completeness. The views expressed and the data presented by contributors and advertisers are not to be construed as having the en-

dorsement of NJMHA, unless so specifically stated.

HOUSING INSIGHT Ph: 609-588-9040

Published by NJMHA Fax: 609-587-6697

Editor: Jane G. Chady

2741 Nottingham Way

Trenton, New Jersey 08619

E-Mail: [email protected]

Website: www.njmha.org

2014 BOARD OF TRUSTEES

OFFICERS

PRESIDENT: John C. Solly

1st VICE PRESIDENT: Paul Casaccio, Oak Forest

MHP, Egg Harbor Twp., NJ

2nd VICE PRESIDENT: Bruce Callen Schechner Lifson Corp., Summit, NJ

SECRETARY: Sean Dalton

Haylor, Freyer & Coon, Inc., Syracuse, NY

TREASURER: Robert V. Dolan Dolan Enterprises, Egg Harbor Twp., NJ

TRUSTEES

Steve Bergstrom: Holly Tree Acres, Pittsgrove, NJ

Dan Dugan: Marlette Homes, Elkton, MD

Christopher J. Hanlon, Esq.: Hanlon Niemann P.C.,

Freehold, NJ

Lori C. Greenberg, Esq.: Lor i C. Greenberg & As-

sociates, Marlton, NJ

Sam Hoye: Fir st Credit Corp., Gloversville, NY

Tom McCann: Key West Insurance Agency,

Sewell, NJ

Debbie Skipper: Pine View Terrace, LLC, Browns

Mills, NJ

Jim Sonday: Jensen’s Deep Run, Cream Ridge, NJ

Rodney Updegrave: Pine Grove Manufactured

Homes, Pine Grove, PA

NancyLu Viviano: Fountainhead Proper ties,

Jackson, NJ

PAST PRESIDENTS COUNCIL

Diane Oresto: Clearwater Village, Spotswood, NJ

Lila Motter: Chapman MH, Vineland, NJ

David Rivkin: Galaxy Manor , Toms River , NJ

STAFF

Jane G. Chady, Executive Director

Housing Insight July/August 2008 Page

MARK YOUR CALENDAR!

NJMHA EVENTS

March 20 NJMHA Board of Directors Meeting

April 24 Round Table Silvermead

May 22 NJMHA Board of Directors Meeting

May 27 Golf Outing

June 19 NJMHA Board of Directors Meeting

July 24 NJMHA Summer Dinner Meeting

NJMHA Events are also listed on the Calendar in the

“Members Only” section of www.njmha.org

Housing Insight March/April 2014

ADVERTISERS INDEX

Page Eagle River Homes 800-406-1062 6

Ernst, Ernst, and Lissenden 732-349-2215 16

Garden Homes Management 203-653-2475 15

GPM Associates, Inc. 856-354-2273 8

Hanlon Niemann, PC. 732-863-9900 5

Key West Insurance Agency 856-374-1520 18

Konya’s Mobile Home Service 908-534-4084 18

Lori C. Greenberg & Assoc. 856-596-9300 12

Rosenbluth, Corsanico & Matz 610-239-6960 14

Schechner Lifson Corp 908-598-7800 2

Security Mortgage Group 585-423-0230 17

Silver-Top 877-235-2929 15

Tyler & Carmeli, P.C. 609-631-0600 7

U.S. Bank 866-300-8345 9

WELCOME NEW MEMBERS!

Atlantis Homes

Brian McKinley

Kathie Shea 14 Village Square

P.O. Box 5010

Smyrna, DE 19977

302-659-3200 x135 (Phone)

302-659-0300 (Fax)

[email protected]

www.atlantishomesllc.com

Monmouth Mobile Home Park

Arthur & Debbie Roedel 4017 Route One

Monmouth Junction, NJ 08852

732-297-2051 (Phone)

732-297-1049 (Fax)

[email protected]

www.mmhp.com


Company: __________________________________________ E-Mail: _______________________________________________ Names: _____________________________________________ Phone: ______________________________________________ Add’l Names: ________________________________________________________________________________________________ Cost: $45.00 per person Payment Enclosed: _____________ or Bill Me __________________

Please RSVP by April 16th to: NJMHA 2741 Nottingham Way, Trenton, NJ 08619 [email protected] Phone: 609-588-9040 Fax: 609-587-6697

General Membership

Meeting

Round Table

Thursday, April 24th 9:00-2:15

Silvermead Manufactured Housing Community Community Clubhouse

100 Cardinal Way Freehold, NJ 07728

Schedule 9:00-9:15 Sign-in 9:15-10:00 General Membership Meeting 10:00-10:45 First Session 10:50-11:35 Second Session 11:40-12:30 Lunch Provided 12:30-1:15 Third Session 1:20-2:05 Fourth Session

Topics Landlord/Tenant Law Christopher J. Hanlon, Esq.

Home Set Up/Foundations Paul Casaccio

Disaster Preparedness Michael Oppegaard, Director Monmouth County Office of Emergency Management

Abandoned Property Titling Renee Gay


2015 APPRAISAL REQUIREMENTS—OUT OF SIGHT, OUT OF MIND?

An appraisal regulation is on the horizon that warrants the attention of NJMHA members. Non-Qualified Mortgages (QMs) HPMLs (Higher-Priced Mortgage Loans) will require appraisals as follows.

1) All transactions under $25,000 are exempt from HPML appraisal requirements.

2) A temporary exemption for all transactions secured whole or in part by a manufactured home until July 18, 2015

3) Rules effective July 18, 2015, for loans secured by new or existing manufactured homes and not land are exempt

from the general HPML appraisal rules if the creditor provides the consumer with a copy of one of the types of

information listed below no later than three days prior to consummation of the transaction:

Manufacturers invoice

Third party unit cost service

Individual with training and experience in manufactured homes

NADA system of trained manufactured housing professionals

The CFPB has received a lot of push back concerning sharing the manufacturer’s invoice with potential buyers. This

option appeared to be the least favorable to members in attendance at the meeting. It boils down to whether retailers

can sell around an invoice with the price. You have to look at the data sheet for the home. Former CFPB employer,

James Matchneer suggested that the third party unit cost service is potentially the most cost effective option.

Matchneer noted that NADA does better with homes that are a year or so old but needs to get better with new homes.

Says Matchneer, we have 1-1/2 years to get that done – work with NADA to get better information available for future

appraisals.

Using an individual with training and experience in manufactured homes does not necessarily mean a li-

censed appraiser. One larger state association is developing a training program to train appraisers to work with manu-

factured housing in their state. Finally, HUD uses the NADA system of trained manufactured housing professionals.

But, says Matchneer, only 83 qualified individuals were affiliated with this program the last time he checked. Nathan

Smith, President of the MHI Board of Directors pointed out that NADA scoring does not include setup, tie down,

skirting, air conditioning and more.

The appraisal rule is purposefully vague per Jason Boehlert of MHI.


On March 10th representatives from the DCA met with NJMHA representatives via conference call to

discuss rehabilitating manufactured homes damaged by Sandy. The DCA program to date held the posi-

tion that you cannot rehabilitate a unit—the unit would have to be replaced. Matt Lyons, the Director of

the Rehabilitation, Reconstruction, Elevation and Mitigation (RREM) program on the construction side

was also on the call.

The officials on the call stated that they need to re-think rehabilitating manufactured homes dam-

aged by Sandy. In Moonachie and elsewhere they are finding that there are complicating factors in re-

placing homes, raising homes, and relocating homes. DCA officials are interested to see who else may

have had Sandy damage so that the DCA and others involved can try to configure a program around the

need. NJMHA representatives explained that members do not want to lose sites and the income that

comes from those sites. NJMHA members may be hesitant to share such information. Chuck Richman,

Deputy Director of the DCA assured NJMHA members on the call that the goal is to “ameliorate Sandy

damage without any detrimental effects on the parks.”

Our association will not be sharing information about damage in communities directly with the

DCA. NJMHA will, however, inform members about communications with government agencies that

may be of benefit. We will continue to inform members about any future communications with the DCA

on this topic.

FIRE SUPPRESSION SYSTEMS LEGISLATION RE-INTRODUCED IN ASSEMBLY

SANDY AID—CHANGES AT THE NEW JERSEY DCA

On March 13th, the Assembly Housing and Community Development Committee cleared bill A-1698, requiring sprin-

kler systems in new single and two-family homes. The bill won approvals in the Senate and Assembly during the last

legislative session but was pocket vetoed by Governor Christie.

NJMHA’s Executive Director testified before this and other committees considering this bill. NJMHA and

PPAG continue to inform legislators of the impracticality of this legislation in relation to manufactured housing.


MIND WHAT YOU SAY AND WRITE

In December 2013, the Appellate Division decided the case entitled, Barnes v. DeLaura, which ad-

dressed competing claims to a security deposit. The action was initiated by the tenant when the landlord re-

fused to return her security deposit upon the termination of her tenancy. The landlord alleged that the tenant

caused damage to his newly renovated rental unit such that the amount of damage exceeded the amount of the

security deposit. As a result, the landlord retained the full amount of the security deposit and filed a counter-

claim against the tenant to collect the difference between the cost to repair the damage and the amount of the

security deposit. The tenant, on the other hand, contended that the unit was not completely finished when she

moved in, that some alleged damage was actually unfinished work and that the remainder of the damage oc-

curred before and after her tenancy.

Finding the testimony of the landlord and his witness to be more credible, the trial court awarded the

landlord an amount equal to the full cost of the repairs as partially offset by the amount of the security deposit.

The Appellate Division did not find any reason to reverse the decision of the trial judge, noting that the trial

judge’s observations concerning credibility are entitled to deference. However, the Appellate Division re-

duced the amount awarded to the landlord. First, the Appellate Division found that the trial judge included an

award for certain repair costs that the trial judge specifically stated he would not award during the trial, and no

explanation was offered by the trial judge for reversing his position. Therefore, the Appellate Division re-

duced the amount of the award by the amount of those costs.

Second, and more importantly, the Appellate Division found that the remaining amount of the award

must be reduced by twenty percent (20%) for wear and tear based on the admission of the landlord. The Ap-

pellate Division found that the landlord provided the tenant with a Security Deposit Itemization form that

itemized the damage that the security deposit would be used to repair. The Security Deposit Itemization form

also stated that the amount of damage would be reduced by twenty percent (20%) to account for wear and tear

for which the tenant was not responsible. Although the tenant did not refer to this discount in her submission

to the court and the trial judge did not consider, the Appellate Division determined that this discount must be

applied to the landlord’s damages.

This decision acts as an important reminder to all landlords to mind what they say, and what they

write – it will be used against you in a court of law.

The above summary is intended for informational use only and does not constitute legal advice

By: Margaret B. Carmeli, Esquire, 609-631-0600, [email protected]

Margaret B. Carmeli, Esq.

TYLER & CARMELI, P.C. Attorneys at Law

George J. Tyler Margaret B. Carmeli

Serving New Jersey business in the following areas of law:

Real Estate Planning & Zoning Contract & Construction Issues Insurance Coverage

Litigation Regulatory & Legislative Representation Environmental Issues Commercial Transactions

Route 130 North, Robbinsville, New Jersey, just minutes from the NJ Turnpike and Routes 195 and 295

1 AAA Drive, Suite 204, Robbinsville, New Jersey 08691

(609) 631-0600—Tel (609) 631-0651 - Fax

[email protected] [email protected]

mailto:[email protected]


CFPB—SHARE YOUR STORY

The House of Representatives’ Financial Services

Committee is asking Americans to share their first

-hand experiences with the CFPB regulations. As

part of its ongoing oversight activities regarding

the Dodd-Frank law and its implementation by

the Consumer Finance Protection Bureau (CFPB)

the Committee is inviting individuals and busi-

nesses impacted by CFPB regulations—such as

the various CFPB regulations affecting manufac-

tured home financing and loan origination—to

share the specifics of their experience with Con-

gress through an internet submission form linked

to the Committee’s news release.

We encourage you to take advantage of

this unique opportunity to share your story. Com-

plete the easy-to-use online form at http://

financialservices.house.gov/tellyourstory/. Or

call (240) 490-2372 and let the House Financial

Services Committee know how all the new lend-

ing laws have directly impacted manufactured

housing and your ability to sell homes to low and

middle income Americans. This is your oppor-

tunity to get your voice heard.

Social media has everyone used to telling

their stories… on Facebook, Twitter, reader and

viewer polls and man-on-the-street news inter-

views. Director Cordray of the CFPB expressed

his interest in hearing the stories during his Janu-

ary testimony before the House Financial Services

Committee. In many areas the CFPB is waiting

until potential homebuyers and those whose busi-

nesses rely on housing finance suffer the conse-

quences of the staggering amount of regulation

coming from the CFPB before making any regu-

latory changes. Homeowners are just beginning

to see the impact of Dodd Frank. Some profes-

sionals have predicted that the fall out from this

regulation in our industry and others will be in-

tense once potential homebuyers become aware of

how regulations intended to protect them will re-

strict and often cut off their access to affordable

housing. As you hear these stories please consid-

er sharing them. Encourage homeowners in your

communities or potential homebuyers to share

their stories also.


CHANGING FEDERAL REGULATIONS

Changes to federal legislation and regulation can help you! On February 11th NJMHA supported MHI’s efforts on Capitol Hill by sending their Executive Director to Washington

D.C. to speak with Congressman Lance and staffers for five other Congressmen and Senators on Capitol Hill. Each

year state associations from all over the country participate in MHI’s legislative conference and help further the goals

of the national association.

NJMHA is now asking for your support. MHI and NJMHA have communicated the issues to the legislators

but legislators want to hear from their constituents. When you call, fax, or write letters to your Congressman or Sena-

tor, those letters not only reinforce the work that MHI and NJMHA have already done. Those communications from

you are more important and help greatly in effecting change. The Preserving Access to Affordable Manufactured

Housing Finance bills, H.R. 1779 (in the House) and S. 1828 (in the Senate), are already effecting important change.

This proposed legislation and the number of co-sponsors involved are putting pressure on the CFPB to make regulato-

ry changes that will affect us in New Jersey. In New Jersey only one Congressman, Jon Runyan, has signed on to co-

sponsor H.R. 1779. Please help us add to that list.

NJMHA visited with the following legislators or their aides on February 11th. If you are in their legislative

district it would be especially advantageous for you to contact them at this time:

Congressman Leonard Lance

Congressman Chris Smith

Congressman Scott Garrett

Congressman Albio Sires

Congressman Rush Holt

Senator Robert Menendez

Note: NJMHA has also met with Congressman LoBiondo, Congressman Garrett, Congressman Runyan and a meet-

ing with Congressman Frelinghuysen is being planned.

MHI’s “Action Alert” is available for your review on the NJMHA website at www.njmha.org. Please see the

“Members Only” section (login: my2012njmha, password mfdhomes) and click on the link in the upper right-hand

corner.

continued on page 10


Preserve Access to Affordable Manufactured Housing Finance Urge Congress to Contact CFPB and Request Rules Relief for Manufactured Housing Market

(February 2014)

Background:

The manufactured housing industry has always been fully committed to protecting consumers throughout the home

buying process and recognizes the importance of responsible lending and improving the consumer experience. How-

ever, MHI and its members are deeply concerned that key mortgage rules issue by the Consumer Financial Protection

Bureau (CFPB) do not adequately take into account the unique financing challenges inherent to the manufactured

home market and would inadvertently curtail access to credit needed to purchase affordable manufactured housing.

The manufactured housing market is already experiencing a contraction of credit available to consumers seeking to

purchase a manufactured home, particularly among low– and moderate-income families. As the impact of High-Cost

Mortgage and Loan Originator rulemakings are fully realized, the already credit-constrained manufactured housing

market is likely to experience even greater retraction. The specifics of the rules impacting the manufactured housing

market include:

Home Ownership and Equity Protection Act (HOEPA) High-Cost Mortgage Triggers: CFPB regulations

that went into effect January 2014 would classify significant numbers of manufactured home loans as High-Cost.

Loans that exceed the High-Cost threshold must assume onerous levels of liability, which lenders are unwilling to

take on. CFPB maintains the regulatory authority to adjust these triggers to ensure a loss of credit in the manu-

factured housing market does not occur.

Loan Originator (LO) Definition: CFPB rues defining those considered Los creates unwarranted regulato-

ry and compliance risks and do not fully equate with the manufactured housing market’s retail sales model. Rules

need to recognize that retailers are fundamentally in the business of selling homes. And, unless they are compen-

sated by a lender or creditor, retailers should not be penalized for providing vitals ales assistance to consumers in

the home-buying process.

Based on substantial authorities granted to it in the Dodd-Frank Act, the CFPB has authority to revise and clarify

these rules to ensure access to credit for affordable manufactured homes is not diminished.

Action Needed:

In addition to cosponsoring House (H.R. 1779) or Senate (S.1828) legislation revising the HOEPA High-Cost Mort-

gage provisions and the Loan Originator definition for manufactured home retailers and salespersons, Members of

Congress are asked to communicate directly with the CFPB to request rules modifications for the manufactured hous-

ing market. MHI members are urged to:

Contact their U.S. Representative and Senators and ask that they formally urge (see sample letter to CFPB Direc-

tor Richard Cordray on page 11) the Bureau to revise the existing HOEPA High-Cost Mortgage triggers and Loan

Originator definition for manufactured home retailers and salespersons.

If they have not yet done so, urge U.S. Representatives and Senators to cosponsor the Preserving Access to Man-

ufactured Housing Act (H.R. 1779/S. 1828; see MHI issue brief for more information).

Find your Congressman: click here.

Senator Robert Menendez

Newark Office One Gateway Center, 11th Floor

Newark, NJ 07102

Attn: Constituent Services

Phone: 973-645-3030

Fax: 973-645-0502

Senator Cory Booker

Washington, D.C. Office

Hart 141

Washington, D.C. 20510

Phone: 202-224-3224

E-mail: [email protected]

Barrington Office 208 White Horse Pike, Suite 18

Barrington, New Jersey 08007

Attn: Constituent Services

Phone: 856-757-5353

Fax: 856-546-1526

http://www.manufacturedhousing.org/webdocs/senate%20house%20MH%20alert%20Dec%202013.pdf

http://www.house.gov/representatives/find/


The Honorable Richard Cordray, Director

Consumer Financial Protection Bureau (CFPB)

1700 G Street, NW

Washington, D.C. 20552

Dear Director Cordray:

As a Member of Congress deeply concerned about preserving access to credit needed by those seeking to pur-

chase affordable manufactured housing, I am writing to respectfully request you make targeted revisions to

mortgage rules that impact credit availability in the manufactured housing market.

While I am fully committed to protecting consumers throughout the home loan process, I am concerned key

mortgage rules issued by the Consumer Financial protection Bureau (CFPB) do not adequately account for

the unique financing challenges inherent to the manufactured housing market, and would inadvertently curtail

consumers’ ability to access manufactured home loans or receive effective assistance in the manufactured

home-buying process.

In particular, CFPB rules expanded the coverage of the Home Ownership and Equity Protection Act

(HOEPA) to include mortgages on manufactured homes. Under these guidelines, a large percentage of small-

balance loans used for the purchase of affordable manufactured housing would be unfairly classified as preda-

tory and High-Cost. Due to the increased lender liabilities associated with making and obtaining a HOEPA

High-Cost Mortgage, it is unlikely these loans would be offered to homebuyers, denying access to necessary

credit for both new and existing manufactured homes.

Eliminating this important source of financing would unfairly penalize low– and moderate-income homebuy-

ers who may not qualify for traditional mortgage financing needed for single family home ownership; do not

have access to limited government-insured and GSE secondary market programs; or live in rural areas where

affordable rental housing is scarce or non-existent.

In addition, CFPB’s loan originator definition is based on traditional mortgage market rules that do not equate

with the business model of the manufactured housing market including lending and retail sales practices.

Manufactured home retailers are fundamentally in the business of selling homes, not originating loans. Un-

less they are compensated by a lender or creditor, retailers should not be penalized for providing vitalsales

assistance to consumers in the home-buying process. Without clarification, low– and moderate-income man-

ufactured home buyers would be unable to receive such vital guidance.

The manufactured housing market is already being impacted by the Bureau’s High-Cost Mortgage and Loan

Originator guidelines. As the weight of these rulemakings is fully realized, the already credit-constrained

manufactured housing market is likely to experience even greater retraction and the industry will be forced to

provide fewer sustainable housing options for low– and moderate-income families.

It is for these reasons I urge you to use the Bureau’s broad authority to make adjustments to these rules.

Thank you for your consideration.

DRAFT LETTER FOR MEMBERS OF CONGRESS TO SEND TO CFPB

REQUESTING REGULATORY RELIEF FOR MANUFACTURED HOUSING MARKET

(FROM MHI)

TENANT WARS: MANY WORDS OF CAUTION


Lori C. Greenberg, Esq.

What do you do when two tenants are fighting? More and more it is best to tell them to call the police and stay out of it. Now with

the new law on legal fees, a landlord who gets involved could owe legal fees and damages to the winning party. So landlords should

be less likely to get involved in these disputes unless there is clear and unequivocal proof as to what happened. No matter what you

do, you want independent verification and documentation. The complaining tenant more often than not refuses to come to court and

has problems of their own.

When there is a fighting dispute, you must advise the tenants to file charges against each other and let them work it out in

municipal court. I had one tenant say another’s air conditioner is too loud. Another tenant complained that the kids are too noisy.

Another tenant complained they did not like the smell of the other tenants cooking. Another tenant complained about the smell of

marijuana, which could be a problem if it is medical use marijuana. You generally cannot evict someone for these complaints, and

you need to evaluate the complainer and be able to prove the violation.

Tell the tenants to document the problems, record the incidents, take pictures, write down license plate numbers etc. Tell

the tenants to get independent police reports. Do not come to court with pictures on a cell phone, print them out! I have received

letters from tenant attorneys, threatening to sue because of the landlord’s refusal to act. The truth is that you generally do not know

what is really going on, even if you think you know. So the first step is to evaluate the problem. If it is just arguing, tell the tenants

to work it out or go to the police. Tell the tenants to document the problem. If it is really bad and there are police reports, you need

to send the fighting tenants a notice to cease or quit depending on the situation. Do you send notices to cease to both tenants? That

depends on what you have observed. Be careful if you pick the wrong side, you could end up paying legal fees and damages.

What about vicious dogs? If a dog is permitted to run loose and bites someone and you let it stay in the park you can be

liable. You need to send the person a 30 notice to cease and then quit to remove the dog. In some cases you need to go right to a 30

day notice to quit. What about the cat person who feeds cats wet food outside? You should get animal control involved so you have

an independent witness. Also get pictures.

What about suspicious traffic, people coming and going at all hours of the night? Unless you have a police report, be care-

ful. What about the person who exposes him/herself to other residents? You still want a police report, but you should move on that

one right away.

There are cases that I was involved with before the recent change that I would not take today because they could expose

my client’s to liability. The moral of this story is to get independent verification of incidents because when you go to court the per-

son accused will almost always lie and without proof, pictures, a witness, the police, the landlord could be liable to pay the legal

fees or expenses of the tenant accused.

LORI C. GREENBERG & ASSOCIATES "I take pride in personal and responsive service to my clients."

Lori C. Greenberg, Esq.

More than twenty years of experience in land lease community issues

including but not limited to:

Rent Control

Landlord/Tenant Disputes

Evictions

Oil Tank & Resale Issues

Contract and Lease Issues

Abandonment

Title Transfers

Fair Rate of Return and Hardship

Increase

Wills & Estate Planning

1 Eves Drive, Suite 111

Marlton, New Jersey 08053

Phone: (856) 596-9300 Fax: (856) 424-7264

E-mail: [email protected]


Golfers Company: _____________________________

I have a foursome; players names are:

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Place me in a foursome.

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Donations Door prizes (bring them to registration table)

Golf Gift Bag items (send before May 20)

Gift Bag Items: Tees, hats, pens and other promotional

donations accepted!

Payment for all selections Contributor Name: ________________________________

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Tuesday, May 27, 2014 STANTON RIDGE GOLF AND COUNTRY CLUB

25 Clubhouse Drive

Whitehouse Station, NJ 08889

Schedule: 9:00 a.m. Registration and Continental Breakfast

10:30 a.m. Shotgun Start

3:00 p.m. BBQ Buffet, Prizes and Happy Hour

Includes: Golf & Cart, Contest markers, Scoring services,

Continental Breakfast, Buffet and Happy Hour

NJMHA

2741 Nottingham Way

Trenton, NJ 08619

Ph: 609-588-9040

Fax: 609-587- 6697

E-Mail: [email protected]

Scoring: Scramble (One score per foursome, play best ball)

All fees are non-refundable—we play rain or shine!

Please Mail to:

Please register by Tuesday, May 13, 2013.

23rd

Annual

NJMHA Golf Tournament


Do you have money left in your 2013 budget? The first 100 paid registrants will be entered into a drawing – winner chooses either an iPad or a free registration! Register today! Early-bird registration is available until March 28, 2014. Make your hotel reservation online or call Caesars Palace at 866-227-5944. To receive the low rate of $119 per night, ask for the MHI Congress & Expo room block or mention our group code SCMHI4. The deadline for the early-bird rate expires on March 28, 2014. The Congress & Expo is the largest annual gathering of industry leaders featuring outstanding speakers, workshops,

exhibits, and networking opportunities! Visit www.congressandexpo.com for details.

Your Congress & Expo registration fee includes: • Full Access to the Exhibit Hall • Welcome Reception in Exhibit Hall • Wednesday Breakfast and Keynote Speaker Ken Segall • Awards Luncheon

• Educational Workshops

• Networking Reception in the Exhibit Hall • Thursday Breakfast and General Session Speaker Chris Fisher • Coffee breaks throughout each morning

Complimentary WiFi in the Exhibit Hall, General Sessions, & Educational Workshops

The 10th Annual Oliver Technologies, Inc. Golf Tournament on Monday afternoon, April 28th and Tuesday’s MHI-National Communities Council Spring Forum, April 29th are available for additional fees.

Charlie Cook shared his thoughts on the next presidential race

during the 2014 MHI Legislative Conference. Cook suggests

we watch Hilary Clinton, Rand Paul and Scott Walker. Our

own Chris Christie was mentioned but, says Cook, if you re-

member the Sesame Street song, “One of These Things is Not

Like the Other” and you look at the candidates for the Repub-

lican ticket you see that Christie is not like the others.

Bridgegate or no, Christie is too far off the mark in Cook’s

opinion.

http://www.congressandexpo.com/2014/register.asp

https://resweb.passkey.com/go/SCMHI4

http://www.congressandexpo.com

http://www.congressandexpo.com/2014/KeynotedescriptionKenSegall.pdf

http://www.congressandexpo.com/2014/ChrisFisherProgramDescription.pdf

http://www.congressandexpo.com/2014/Golf_Tournament.asp


Thinking of Selling your Manufactured Housing Community?

Contact

GARDEN HOMES MANAGEMENT CORPORATION One of New Jersey’s Largest Community Owners

Since 1984 - 20 locations - 1,785 sites

All sizes considered (our communities range from 34 to 244 sites)

Cash or owner financing to suit your needs

Quick response and quick closing

Deal directly with the principal:

Richard Freedman, President (203) 653-2475

[email protected]

The Obama Administration's Fiscal Year 2015 budget,

proposes to fund the HUD Manufactured Housing

Construction and Safety Standards program at a level

of $10 million. To meet this budget, HUD plans to pro-

pose a label fee increase of up to $100 per floor, and

expects to have a new fee in place later this year. Un-

der current law, HUD will need to conduct rulemaking,

including justifying any fee increase and asking the

Manufactured Housing Consensus Committee

(MHCC) to consider its proposal. However, the pro-

posal says that HUD plans to seek a legislative change

authorizing it to set future fee changes via notice, ra-

ther than full blown rulemaking.

HUD LABEL FEE INCREASE?

Did You Know?

The newest posting requirement is a new employ-

er poster on equitable pay. The law only applies

to employers with 50+ employers.

Employers can download the new gender

discrimination poster at the NJ Department of

Labor’s site: http://bit.ly/1lF1sCL

Employers can get all the required state

posters they need for their workplace FREE OF

CHARGE—visit http://bit.ly/1eJ3f4L.

EMPLOYER POSTING REQUIREMENTS

Although Dave Stevens, President and CEO of the Mortgage Bankers Association, is as encumbered with

compliance issues resulting from Dodd Frank as anyone he took time to speak with MHI members in

February. Insights from professionals outside of the manufactured housing industry can open our eyes to

opportunities that we may miss in our day-to-day operations.

Says Stevens, “if poor and low-income people suffer from the Qualified Mortgage rules, those

rules will have to be adjusted.” Stevens says the Mortgage Bankers Association is monitoring the market

for indications of this consequence of Dodd Frank as are other groups. The Qualified Mortgage (also

known as the “Ability to Repay”, “ATR” or “QM Rule”) outlines eight criteria every lender must verify

and consider using third-party sources for every would-be borrower before extending credit. Loosening

up these rules will expand opportunities for low-income homeowners including those interested in pur-

chasing manufactured homes.

The Mortgage Bankers Association sees strong household formation coming our way. What do

we need for families coming into the market? Stevens says that manufactured housing’s price point ap-

peals to the up and coming homeowners. Economic trends point to a need for more affordable housing.

Student loan debt is a serious issue. Stevens believes that student debt means there will be more renters

and fewer young people buying homes. Stevens says we are close to GSE reform. Having a quality sec-

ondary market for manufactured home loans could put us on even footing with site built homes.

FHA representatives at the MHI meeting stated that they would like to see the lender community

offer more Title 1 loans. However, the loan limits structured by Congress are low. Kevin Clayton stated

“Until you increase loan limits, you are not going to get a lot of action.” MHI representatives will be

meeting with the FHA in the future to discuss FHA’s role in manufactured housing.


Comprehensive Planning & Engineering Services for

Land Development Home Tie Down Plans

John J. Mallon John N. Ernst

Robert J. Romano

ERNST, ERNST & LISSENDEN CONSULTING ENGINEERS, PLANNERS AND SURVEYORS 52 Hyers Street, PO Box 391 Toms River, New Jersey 08753 T e l e p h o n e : ( 7 3 2 ) 3 4 9 - 2 2 1 5 F a x ( 7 3 2 ) 3 4 9 - 4 1 2 7

www.eelengr.com

A VIEW FROM THE MORTGAGE

BANKERS ASSOCIATION


In January the House Financial Services Committee held a hearing doing an annual review of the CFPB. During

the hearing 10 members of the committee, on a bipartisan basis, urged Cordray to continue working the manufac-

tured housing industry to resolve our key lending issues. All requested that Cordray (his staff) go back to

representatives of the industry to work out issues or to institute a (retroactive delay in the rules for MH. Ranking

member Maxine Waters (D-CA) were included in those speaking in support of the industry’s concerns. Others in-

cluded: Reps. Stephen Fincher (R-TN), Spencer Bachus (R-AL), Joyce Beatty (D-OH), Bill Clay (D-MO), Keith

Ellison (D-MN), Greg Meeks (D-NY), Steve Pearce (R-NM) and Terri Sewell (D-AL). This wouldn’t have hap-

pened without support in generating co-sponsors to HR 1779 and S 1828. It is pressure like this that reinforces the

need for the CFPB to get it right. You can view the hearing at http://financialservices.house.gov/calendar/

eventsingle.aspx?EventID=367345

On March 13th the U.S. Senate voted 72-22 to approve the Homeowner Flood Insurance Affordability Act (H.R.

3370).

On March 16th, the Senate Banking Committee leaders unveiled a GSE reform plan that includes language that

would provide manufactured home loans secured by personal property with key access to a newly envisioned sec-

ondary market mechanism. The bill would wind down Fannie Mae and Freddie Mac and replace them with a new

Federal Mortgage Insurance Company (FMIC) that would be modeled after the Federal Deposit Insurance Corpora-

tion (FDIC).

On March 6th, leadership of MHI announced the selection of Pamela Beck Danner to become the new Administra-

tor for the Office of Manufactured Housing at the Department of Housing and Urban Development (HUD).

A principal in the law firm of Danner & Associates in McLean, Virginia, Danner served at HUD in the 80s first as

counsel and then as Director of the Office of Manufactured Housing and Regulatory Functions.

MHI NEWS

http://financialservices.house.gov/calendar/eventsingle.aspx?EventID=367345

http://financialservices.house.gov/calendar/eventsingle.aspx?EventID=367345


NJPDES PERMIT FEES

The NJPDES program rules are set forth at N.J.A.C.

7:14A. All persons who wish to discharge wastewater in

the state are required to obtain a NJPDES discharge per-

mit from the Department. Pursuant to Section 9 of the

State Act, the Department is authorized to "establish and

charge reasonable annual administrative fees, which fees

shall be based upon, and shall not exceed, the estimated

cost of processing, monitoring and administering the

NJPDES permits." Fees are assessed to cover the De-

partment's costs to issue and manage NJPDES permits.

These costs include the overhead involved in running

the program including employee benefits and retirement.

For more information about the program please

visit: http://www.nj.gov/dep/dwq/njpdesfees.html.

NJMHA is evaluating the program and the Legislative

Committee will determine whether or not the association

will be submitting comments.

If you have any comments, please contact Jane

in the NJMHA office.

DODD FRANK

UNINTENDED CONSEQUENCES

At MHI’s legislative conference in Washington D.C. in

February lenders discussed the “shotgun” approach to sub-

mitting mortgage applications. Mortgage applications for

individuals with low credit scores are now going out to all

possible lenders. The lenders have to process all applica-

tion increasing their cost of doing business. Now loan orig-

ination costs are going up and these costs will be passed on

to consumers.

Another unintended consequence—because these

are personal loans, the shotgun approach does damage to

the individual’s credit score—the score goes down with

each credit check from each potential lender.

The Internal Revenue Service announced that effec-

tive January 1, 2014, the standard deductible mile-

age rate for the cost of operating a car for business

purposes, will decrease from the current 56.5 cents

per mile to 56 cents per mile.

http://www.nj.gov/dep/dwq/714a.htm

http://www.nj.gov/dep/dwq/714a.htm

Special

points of

interest: Understand what

activities are covered by

the Rule.

All is not lost, what you

can do.

Be careful there are traps

for the unwary.

What you say is

important too.


New rules effective Jan. 1, 2014, implement the Dodd-Frank Act, federal legislation

aimed, in part, at protecting consumers from financial problems relating to home

mortgages. One of the new rules relates to loan originator compensation (“LO Comp

Rule”). Similar to the SAFE Act, which deals with state mortgage loan originator

licensing, the LO Comp Rule deals with loan originators. Think in terms of the SAFE Act

dealing with the mortgage activity that requires a license and the LO Comp rule

impacting a wide range of activities that subject you and your business to additional

federal regulation. The activities regulated by each law are not the same.

First, the LO Comp Rule applies to both individuals

and entities. By contrast, the SAFE Act’s MLO

licensing requirements apply only to individuals.

Second, the LO Comp Rule’s coverage is determined

by federal law, while SAFE Act licensing

requirements are determined by state law. As a

result, the determination of whether you are a MLO

required to be licensed under the state SAFE Act is

separate and apart from the determination of whether your activities are governed by LO

Comp Rule. While it is a separate analysis, if an individual is a loan originator under the

Rule, the individual will likely need to be licensed as a mortgage loan originator under

the SAFE Act’s licensing, testing, and continuing education requirements.

The LO Comp Rule defines specific activities that make an individual or entity a loan

originator and contains restrictions on compensation for covered individuals and

entities. Furthermore, if a retailer or its employees engage in LO activities, the

compensation paid to the retailer for loan origination activities is included in the “points

and fees” calculation for determining whether a loan is a high-cost mortgage and

whether the loan is a qualified mortgage.

Finally, the compensation received by the individual and retailer would be subject to the

Rule’s compensation restrictions. You do not want to be considered a loan originator

unless you do so knowingly and purposefully.

Background on Dodd-Frank’s Loan Originator Compensation Rule

By the Wisconsin Housing Alliance

This is a special report

of the Wisconsin Hous-

ing Alliance

258 Corporate Dr Suite

200C

Madison, WI 53714

608.255.3131

The Impact of Dodd-Frank on

the MH Industry

A Dealer or Salesperson who wants to avoid violating the LO Comp Rule must not:

● Discuss credit terms that may be available from a creditor or loan originator based on the consumer’s financial status.

● Tell a consumer a specific interest rate that can be offered.

● Answer direct questions that would sway a consumer to choose a creditor or loan originator. For example, you can-

not respond to questions such as, “Which lender is best? Which lender would you use? Which lender will make my

monthly payments lowest?”

● Provide an application form for only one creditor.

● Quote rates, fees, costs, payments, required down payments or other credit terms that may be available for loan prod-

ucts that are offered by creditors.

● Assist a consumer in selecting which credit terms to choose or which loan product to choose when he or she has ob-

tained multiple approvals.

● Advertise estimated monthly payments, that the retailer can provide or help find financing. terms dealing with rates.

● Have signs that discuss the ease of getting financing.

Avoid saying:

No credit, no problem Buy here, pay here No credit check financing Your land is your down payment

Executive Summary


Under the LO Comp Rule, a Dealer and Salesperson can:

Describe the loan process to a customer

In response to an inquiry from the consumer, describe what credit language and terms mean

Give general application process instructions

Provide the consumer with a list of lenders likely to make manufactured housing loans

Allow lenders to advertise their products in the retailer’s office as long it is done in a neutral manner

Discuss sales information with lender personnel

Administer the loan closing, but scheduling the closing must be done by the lender

Pull a consumer’s credit report but for only sales related proposes such as whether they are a bona fide

prospect.

A community can pull a credit report for residency qualifying proposes only.

You Can Say:

“Lenders offer rates as low as 3 percent to qualified customers.”

Your actions will determine if you are required to hold a mortgage loan originator’s license, your compensation is counted towards points and fees

in determining the status of the mortgage, or both.


The CFPB revised the LO Comp Rule as part of a series of new reg-

ulations applicable to the mortgage industry. The new LO Comp

Rule, along with the other regulations, are aimed at preventing per-

ceived abuses in the mortgage industry that contributed to the re-

cent financial crisis.

Much of Dodd-Frank, as well as its implementing regulations, deals

with how creditors and servicers will make, underwrite and service

loans. Since those issues are beyond the control of retailers in our

industry, they will not be addressed here. Each creditor is making its

own arrangements on how to deal with Dodd-Frank and those with

whom you have done business will be in touch with you. We have

been told that creditors are considering the development of a com-

mon, generic loan application form that will be accepted by many

creditors to avoid steering and referral issues.

The LO Comp Rule is designed to protect consumers by reducing

incentives for loan originators to steer consumers into loans with

particular terms and by ensuring that loan originators are qualified.

Keep this in mind: Employees of a manufactured housing re-

tailer are not LOs under the LO Comp Rule if they do not

take applications, offer or negotiate credit terms, or advise

a consumer on credit terms. Credit terms mean rates, fees and

other costs. Credit terms are selected based on the consumer’s fi-

nancial characteristics when those terms are selected based on any

factors that may influence a credit decision, such as debts, income,

assets or credit history. If a retailer or its employees are consid-

ered LOs under the LO Comp Rule, here are some clear rules

about what a retailer and its employees cannot do:

● Be compensated based on transactions terms, except the loan

amount.

● Be compensated by both the creditor and a consumer or anoth-

er party.

Following is a list of activities that may be conducted by a retailer’s

employee without the employees being considered a loan originator.

What does the LO Comp Rule Mean?

Even if your salespeople

are independent contrac-

tors, you are liable if they

violate the rules, and you

may be considered a loan

originator organization.


What is Permissible? Here are some activities that will not make an employee a Loan Originators under the LO Comp Rule:

● Generally provide credit application instructions to consumers so that consumers can complete an

application, such as describing the meaning of the terms: “assets, primary residence, monthly income, dec-

larations (legal terms such as bankruptcy, alimony) liabilities and recurring debts.” When providing application instructions,

you should avoid the appearance that you are telling the customer what information to put on the application.

● Generally describe the credit application process without advising on credit terms.

● The lender, with your approval, will pull your credit report to let them understand your financial profile.”

● The lender will need to verify your income sources and employment.”

● The lender will take your income, job and debt information and evaluate whether you might qualify for their

loan.”

● In response to an inquiry, describe credit language and what those terms mean, such as what is an interest rate, what is

the APR, or the meaning of common fees in a transaction.

● Provide general application instructions to consumers so they can fill out their applications and highlight on the application

the places they need to complete. Answer specific questions asked by the consumer about the application process as long as

the responses do not deal with credit specifics or in any way direct a consumer to, or influence a consumer to choose, any

creditor or loan originator.

● Provide to the consumer a list of creditors that likely will make manufactured housing loans in the general area. When

compiling a list of potential lenders, do it by alphabetical order and hand that list with the fax numbers, addresses, website

addresses and email addresses for lenders and loan originators to the consumer.

● Allow lending institutions to advertise their products within the retailer’s offices through flyers and brochures as long as it

is done in a neutral manner and does not rise to the level of referral or steering.

● Discuss sales related details with creditor personnel.

● Administer loan closing, including making sure the borrower has signed all forms contained in the closing packet. Howev-

er, a retailer employee cannot arrange/schedule the closing and should not discuss credit terms or answer question relating

to credit terms at the loan closing. A duly licensed MLO employed by the lender should be available in person or by tele-

phone during the loan closing to answer the borrower’s questions.

● Pull a consumer’s credit report for sales-related purposes, such as qualifying a customer for a sale by matching a customer

with the correct home and determining whether the customer is a bona fide prospect, but not credit related purposes. A

retailer employee should not pull a consumer’s credit report to direct the consumer to a particular lender or loan terms or

use it to determine what credit terms may be available. The retailer employee also should not use the contents of the credit

report to determine the names of available lenders that the retailer employee will provide to the consumer. When obtaining

a credit report, it is advisable that you have the consumer’s prior signed authorization and that you not provide the consum-

er with a copy of the credit report. The authorization instructions may include instructions to the consumer on how the

consumer can pull his or her own credit report.

● A community may still pull a consumer credit report for residency qualifying purposes. Again, it is advisable that you have

the consumer’s prior written signed authorization.

● A consumer may go to a lender’s website from your office and fill out the lender’s application; however, the consumer

should transmit the application to the lender.


What You Cannot Do Without being considered a Loan Originator under the LO Comp Rule, a retailer’s employees cannot:

● Fill out a loan application, or in any way physically assist the applicant in filling out the application. Two interpretations of

this rule should make it clear. You cannot fill out an application form for a blind customer; you cannot provide a foreign lan-

guage translator that completes an application form for a person who does not speak English. You can, however, provide a

translator for a non-English speaker, but they cannot fill out the forms.

● Input application information into an online application or other automated system.

● Take a loan application over the phone and then put that information into a form to be sent to a creditor or email a com-

pleted application to a creditor that the customer completed on the retailer’s computer.

● Discuss specific terms of a loan.

● Present credit terms for the consumer’s consideration that are selected based on the consumer’s financial characteristics,

or communicate with a consumer for the purpose of reaching a mutual understanding about prospective credit terms. This

means a creditor or loan originator, as opposed to a retailer or its employees, should provide credit approvals with credit

terms to the consumer in the first instance.

● If a bank owns the home and offers a special financing package for you to transmit to consumers, you will be in violation

of the act if you do so because that could be seen as offering credit terms and steering.

● Don’t arrange/schedule loan closings with consumers. Retailer employees can still administer a loan closing and make sure

the consumer properly completes all forms in a closing packet; however, the lender, not the retailer employee, should dis-

cuss credit terms and answer a borrower’s questions relating to credit terms at closing. A duly licensed MLO employed by

the lender should be available in person or by telephone during the loan closing to answer the borrower’s questions.

● Direct, refer or steer a customer to any creditor or loan originator.

● If you are a dealer and have an in-house MLO, then you can recommend your own MLO to the consumer, just like any

other lending institution, but your loan originator cannot “steer” a consumer to a loan based on the fact that the loan origi-

nator will receive greater compensation from the creditor in that transaction than in other transactions the originator of-

fered or could have offered to the consumer, unless the consummated transaction is in the consumer’s best interest. There

are detailed rules about what loans would be in the consumer’ best interest. In this situation, the MLO and non-MLO need

to be employees of the same entity and the non-MLOs cannot make the referral based on an assessment of the consumer’s

financial characteristics. The non-MLO should also not discuss credit terms that are or may be available.

● Negotiate terms of the loan.

● Ask for or collect consumer information such as the customer’s debts, income, assets, or credit history for the purpose

of determining his or her financial characteristics to then select credit terms or the creditors or loan originators that you will

provide information about to the consumer.

● Examine the consumer’s credit history.

● Discuss credit terms that may be available from a creditor or loan originator based on the consumer’s financial status.

NJMHA

Round Table

April 24th Please see page 4

NJMHA Golf Tournament Tuesday, May 27, 2014

STANTON RIDGE GOLF

AND COUNTRY CLUB

25 Clubhouse Drive

Whitehouse Station, NJ 08889

Continental Breakfast

Shotgun Start

Happy Hour

BBQ Buffet

Prizes

Please see page 13

for more information!

March/April 2014 MESSAGE FROM THE EXECUTIVE DIRECTOR … · 2016-05-16 · Fair Lending CFPB...

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Transcript of March/April 2014 MESSAGE FROM THE EXECUTIVE DIRECTOR … · 2016-05-16 · Fair Lending CFPB...