Vote Explanation for H.R. 650 & H.R. 685
On Tuesday, the House voted on and passed the Preserving Access to Manufactured Housing Act (H.R. 650) and the Mortgage Choice Act (H.R. 685). I voted against both bills because they roll back critical consumer financial protections included in the Dodd-Frank bill that Congress passed after the 2008 financial crisis.
H.R. 650: Many borrowers purchasing manufactured homes are among the lowest income and economically vulnerable consumers in the United States, and often see the highest interest rates among the population that chooses to purchase manufactured housing. As a result of the 2008 financial crisis, the Consumer Financial Protection Bureau created new rules to better protect these types of consumers from predatory lending practices.
H.R. 650 would roll back these rules and put borrowers at risk of predatory lending practices and being steered into more expensive loans even when they qualify for lower-cost alternatives.
H.R. 685: In response to the 2008 financial crisis, the Dodd-Frank Act required lenders to determine that, at the time a mortgage is made, the borrower actually has the ability to pay the mortgage with interest and various fees back to the bank. This is known as a Qualified Mortgage (QM).
H.R. 685 would undermine this requirement and allow lenders to begin qualifying borrowers for mortgages with higher fees that ignore their ability to pay them back. Within the current market, H.R. 685 would encourage lenders to steer consumers toward more expensive financing options.
Although both bills passed the House and may be taken up by the Senate in the near future, the President indicated he would veto both bills.