110TH CONGRESS 
1ST SESSION H. R. 2139 
AN ACT 
To modernize the manufactured housing loan insurance 
program under title I of the National Housing Act. 
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 
families 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 manu-
factured home loans were insured under title I; 
(6) in 2006, fewer than 1,500 manufactured 
housing loans were insured under title I;
(7) the loan limits for title I manufactured 
housing 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 manufac-
tured housing loans, leaving American families who 
have the most difficulty achieving homeownership 
without adequate financing options for home-only 
manufactured home purchases. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to provide adequate funding for FHA-in-
sured manufactured housing loans for low- and mod-
erate-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 
participation 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.
SEC. 3. EXCEPTION TO LIMITATION ON FINANCIAL INSTI-
TUTION 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
MANUFAC-
TURED HOUSING LOANS.—Any contract of insurance 
with respect to loans, advances of credit, or pur-
chases in connection with a manufactured home or 
a lot on which to place a manufactured home (or 
both) for a financial institution that is executed 
under this title after the date of the enactment of 
the FHA Manufactured Housing Loan Moderniza-
tion Act of 2007 by the Secretary shall be conclusive 
evidence of the eligibility of such financial institution 
for insurance, and the validity of any contract of in-
surance so executed shall be incontestable in the
hands of the bearer from the date of the execution 
of such contract, except for fraud or misrepresenta-
tion 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 
subparagraphs (A) and (B). 
(b) ANNUAL INDEXING.—Subsection (b) of section 2 
of the National Housing Act (12 U.S.C. 1703(b)), as
amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new para-
graph: 
‘‘(9) ANNUAL
INDEXING
OF
MANUFACTURED 
HOUSING
LOANS.—The Secretary shall develop a 
method of indexing in order to annually adjust the 
loan limits established in subparagraphs (A)(ii), (C), 
(D), and (E) of this subsection. Such index shall be 
based on the manufactured housing price data col-
lected by the United States Census Bureau. The 
Secretary shall establish such index no later than 
one year after the date of the enactment of the FHA 
Manufactured Housing Loan Modernization Act of 
2007.’’. 
(c) TECHNICAL AND CONFORMING CHANGES.—Para-
graph (1) of section 2(b) of the National Housing Act (12 
U.S.C. 1703(b)(1)) is amended— 
(1) by striking ‘‘No’’ and inserting ‘‘Except as 
provided in the last sentence of this paragraph, no’’; 
and 
(2) by adding after and below subparagraph 
(G) the following: 
‘‘The Secretary shall, by regulation, annually increase the 
dollar amount limitations in subparagraphs (A)(ii), (C), 
(D), and (E) (as such limitations may have been pre-
viously adjusted under this sentence) in accordance with 
the index established pursuant to paragraph (9).’’. 
SEC. 6. INSURANCE PREMIUMS. 
Subsection (f) of section 2 of the National Housing 
Act (12 U.S.C. 1703(f)) is amended— 
(1) by inserting ‘‘(1) PREMIUM CHARGES.—’’ 
after ‘‘(f)’’; and 
(2) by adding at the end the following new 
paragraph:’’. 
‘‘(2) MANUFACTURED
HOME
LOANS.—Notwith-
standing paragraph (1), in the case of a loan, advance of 
credit, or purchase in connection with a manufactured 
home or a lot on which to place such a home (or both), 
the premium charge for the insurance granted under this 
section shall be paid by the borrower under the loan or 
advance of credit, as follows: 
‘‘(A) At the time of the making of the loan, ad-
vance of credit, or purchase, a single premium pay-
ment in an amount not to exceed 2.25 percent of the 
amount of the original insured principal obligation. 
‘‘(B) In addition to the premium under sub-
paragraph (A), annual premium payments during 
the term of the loan, advance, or obligation pur-
chased in an amount not exceeding 1.0 percent of 
the remaining insured principal balance (excluding