IB 
Union Calendar No. 125 
110TH CONGRESS 
1ST SESSION H. R. 2139 
[Report No. 110–206] 
To modernize the manufactured housing loan insurance program under title 
I of the National Housing Act. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2007 
Mr. DONNELLY (for himself, Mr. FRANK of Massachusetts, Mr. FEENEY, and 
Mr. TIBERI) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
JUNE 21, 2007 
Additional sponsors: Ms. CARSON, Mr. HINCHEY, Mr. SHERMAN, Mr. SCOTT 
of Georgia, Mr. BOSWELL, Mr. BOYD of Florida, Mr. RAHALL, Mr. 
CLEAVER, Mr. CALVERT, Mr. DAVIS of Kentucky, Mr. MCHENRY, Mr. 
PEARCE, Mr. KIRK, Mr. LINCOLN DAVIS of Tennessee, Mr. MOORE of 
Kansas, Ms. MOORE of Wisconsin, Mr. CHANDLER, Mr. ELLSWORTH, Mr. 
WILSON of Ohio, Mr. GILLMOR, Mr. SIRES, Mr. ELLISON, Mr. KNOLLEN-
BERG, Mr. SOUDER, Mr. JONES of North Carolina, and Mr. ETHERIDGE 
JUNE 21, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 3, 2007] 
A BILL 
To modernize the manufactured housing loan insurance 
program under title I of the National Housing Act. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This title may be cited as the ‘‘FHA Manufactured 
Housing Loan Modernization Act of 2007’’. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) manufactured housing plays a vital role in 
providing housing for low- and moderate-income fam-
ilies in the United States; 
(2) the FHA title I insurance program for man-
ufactured home loans traditionally has been a major 
provider of mortgage insurance for home-only trans-
actions; 
(3) the manufactured housing market is in the 
midst of a prolonged downturn which has resulted in 
a severe contraction of traditional sources of private 
lending for manufactured home purchases; 
(4) during past downturns the FHA title I in-
surance program for manufactured homes has filled 
the lending void by providing stability until the pri-
vate markets could recover; 
(5) in 1992, during the manufactured housing 
industry’s last major recession, over 30,000 manufac-
tured home loans were insured under title I; 
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(6) in 2006, fewer than 1,500 manufactured 
housing loans were insured under title I; 
(7) the loan limits for title I manufactured hous-
ing loans have not been adjusted for inflation since 
1992; and 
(8) these problems with the title I program have 
resulted in an atrophied market for manufactured 
housing loans, leaving American families who have 
the most difficulty achieving homeownership without 
adequate financing options for home-only manufac-
tured home purchases. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to provide adequate funding for FHA-insured 
manufactured housing loans for low- and moderate- 
income homebuyers during all economic cycles in the 
manufactured housing industry; 
(2) to modernize the FHA title I insurance pro-
gram for manufactured housing loans to enhance par-
ticipation by Ginnie Mae and the private lending 
markets; and 
(3) to adjust the low loan limits for title I man-
ufactured home loan insurance to reflect the increase 
in costs since such limits were last increased in 1992 
and to index the limits to inflation. 
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SEC. 3. EXCEPTION TO LIMITATION ON FINANCIAL INSTITU-
TION PORTFOLIO. 
The second sentence of section 2(a) of the National 
Housing Act (12 U.S.C. 1703(a)) is amended— 
(1) by striking ‘‘In no case’’ and inserting 
‘‘Other than in connection with a manufactured home 
or a lot on which to place such a home (or both), in 
no case’’; and 
(2) by striking ‘‘: Provided, That with’’ and in-
serting ‘‘. With’’. 
SEC. 4. INSURANCE BENEFITS. 
(a) IN GENERAL.—Subsection (b) of section 2 of the 
National Housing Act (12 U.S.C. 1703(b)), is amended by 
adding at the end the following new paragraph: 
‘‘(8) INSURANCE BENEFITS FOR MANUFACTURED 
HOUSING LOANS.—Any contract of insurance with re-
spect to loans, advances of credit, or purchases in con-
nection with a manufactured home or a lot on which 
to place a manufactured home (or both) for a finan-
cial institution that is executed under this title after 
the date of the enactment of the FHA Manufactured 
Housing Loan Modernization Act of 2007 by the Sec-
retary shall be conclusive evidence of the eligibility of 
such financial institution for insurance, and the va-
lidity of any contract of insurance so executed shall 
be incontestable in the hands of the bearer from the 
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date of the execution of such contract, except for fraud 
or misrepresentation on the part of such institution.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall only apply to loans that are registered or 
endorsed for insurance after the date of the enactment of 
this Act. 
SEC. 5. MAXIMUM LOAN LIMITS. 
(a) DOLLAR AMOUNTS.—Paragraph (1) of section 2(b) 
of the National Housing Act (12 U.S.C. 1703(b)(1)) is 
amended— 
(1) in clause (ii) of subparagraph (A), by strik-
ing ‘‘$17,500’’ and inserting ‘‘$25,090’’; 
(2) in subparagraph (C) by striking ‘‘$48,600’’ 
and inserting ‘‘$69,678’’; 
(3) in subparagraph (D) by striking ‘‘$64,800’’ 
and inserting ‘‘$92,904’’; 
(4) in subparagraph (E) by striking ‘‘$16,200’’ 
and inserting ‘‘$23,226’’; and 
(5) by realigning subparagraphs (C), (D), and 
(E) 2 ems to the left so that the left margins of such 
subparagraphs are aligned with the margins of sub-
paragraphs (A) and (B). 
(b) ANNUAL INDEXING.—Subsection (b) of section 2 of 
the National Housing Act (12 U.S.C. 1703(b)), as amended 
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