II 

112TH CONGRESS 

2D SESSION S. 3484 

To amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide an 

exception from the definition of loan originator for certain loans made 

with respect to manufactured homes, to amend the Truth in Lending 

Act to modify the definition of a high-cost mortgage, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 2, 2012 

Mr. BROWN of Ohio introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the S.A.F.E. Mortgage Licensing Act of 2008 

to provide an exception from the definition of loan originator for certain loans made with respect to manufactured homes, to amend the Truth in Lending Act to 

modify the definition of a high-cost mortgage, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Preserving Access to 

5 Manufactured Housing Act’’. 


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1 SEC. 2. MODIFICATIONS TO DEFINITIONS. 

2 (a) LOAN ORIGINATOR DEFINITION.—Section 

3 1503(4) of the S.A.F.E. Mortgage Licensing Act of 2008 

4 (12 U.S.C. 5102(4)) is amended— 

5 (1) in subparagraph (A)— 

6 (A) in clause (iii), by striking ‘‘and’’ at the 

7 end; 

8 (B) in clause (iv), by striking the period 

9 and inserting ‘‘; and’’; and 

10 (C) by adding at the end the following new 

11 clause: 

12 ‘‘(v) does not include an individual or 

13 entity that is a seller of manufactured 

14 homes, unless such individual or entity is 

15 engaged in the business of a loan origi16 nator or receives compensation or gain for 

17 engaging in activities described under 

18 clause (i) that is in excess of any com19 pensation or gain received in a comparable 

20 cash transaction.’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(E) ENGAGED IN THE BUSINESS OF A

23 LOAN ORIGINATOR.—For purposes of this para24 graph, the term ‘engaged in the business of a 

25 loan originator’ means to perform loan origi26 nator activities described under subparagraph 


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1 (A)(i) as a regular course of trade or business 

2 in exchange for compensation or gain paid sole3 ly for engaging in the sale or distribution of 

4 residential mortgage loans.’’. 

5 (b) HIGH-COST MORTGAGE DEFINITION.—Section 

6 103 of the Truth in Lending Act (15 U.S.C. 1602) is 

7 amended— 

8 (1) by redesignating subsection (aa) (relating to 

9 disclosure of greater amount or percentage), as so 

10 designated by section 1100A of Public Law 111– 

11 203, as subsection (bb); 

12 (2) by redesignating subsection (bb) (relating to 

13 high-cost mortgages), as so designated by section 

14 1100A of Public Law 111–203, as subsection (aa), 

15 and moving such subsection to immediately follow 

16 subsection (z); and 

17 (3) in subsection (aa)(1)(A), as so redesig18 nated— 

19 (A) in clause (i)(I)— 

20 (i) by striking ‘‘(8.5 percentage 

21 points, if the dwelling is personal property 

22 and the transaction is for less than 

23 $50,000)’’; and 

24 (ii) by striking ‘‘or’’ at the end; 


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1 (B) in clause (i)(II), by adding ‘‘or’’ at the 

2 end; 

3 (C) in clause (i), by adding at the end the 

4 following: 

5 ‘‘(III) by a first mortgage on a 

6 consumer’s principal dwelling that is 

7 considered personal property (or is a 

8 consumer credit transaction that does 

9 not include the purchase of real prop10 erty on which a dwelling is to be 

11 placed), the annual percentage rate at 

12 consummation of the transaction will 

13 exceed the average prime offer rate, 

14 as defined in section 129C(b)(2)(B), 

15 for a comparable transaction, by more 

16 than— 

17 ‘‘(aa) 8.5 percentage points, 

18 in the case of a transaction in an 

19 amount of $50,000 or more, but 

20 less than $75,000 (as such 

21 amounts are adjusted by the Bu22 reau to reflect the change in the 

23 Consumer Price Index); 

24 ‘‘(bb) 10.5 percentage 

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1 action in an amount of more 

2 than $30,000, but less than 

3 $50,000 (as such amounts are 

4 adjusted by the Bureau to reflect 

5 the change in the Consumer 

6 Price Index); or 

7 ‘‘(cc) 12.5 percentage 

8 points, in the case of a trans9 action in an amount of $30,000 

10 or less (as such amount is ad11 justed by the Bureau to reflect 

12 the change in the Consumer 

13 Price Index), or a higher percent14 age established by the Bureau 

15 not to exceed 14.5 percentage 

16 points in such cases, if the Bu17 reau determines that the lower 

18 rate would restrict access to cred19 it and that raising the rate would 

20 not have a detrimental impact on 

21 consumer protection.’’; and 

22 (D) in clause (ii)— 

23 (i) in subclause (I), by striking ‘‘or’’ 

24 at the end; and 


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1 (ii) by adding at the end the fol2 lowing: 

3 ‘‘(III) in the case of a trans4 action for less than $75,000 in which 

5 the dwelling is considered personal 

6 property (or is a consumer credit 

7 transaction that does not include the 

8 purchase of real property on which a 

9 dwelling is to be placed) the greater of 

10 5 percent of the total transaction 

11 amount or $3,000; or’’. 

Æ 


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