H. R. 3221—191 
Subtitle B—Manufactured Housing Loan 
Modernization 
SEC. 2141. SHORT TITLE. 
This subtitle may be cited as the ‘‘FHA Manufactured Housing 
Loan Modernization Act of 2008’’. 
SEC. 2142. PURPOSES. 
The purposes of this subtitle are— 
(1) to provide adequate funding for FHA-insured manufac-
tured 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 program 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 manufactured 
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. 2143. EXCEPTION TO LIMITATION ON FINANCIAL INSTITUTION 
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 inserting ‘‘. 
With’’. 
SEC. 2144. 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 respect to loans, 
advances of credit, or purchases in connection with a manufac-
tured 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 Manufac-
tured Housing Loan Modernization Act of 2008 by the Secretary 
shall be conclusive evidence of the eligibility of such financial 
institution for insurance, and the validity of any contract of 
insurance so executed shall be incontestable in the hands of 
the bearer from the date of the execution of such contract, 
except for fraud or misrepresentation on the part of such 
institution.’’. 
(b) APPLICABILITY.—The amendment made by subsection (a) 
shall only apply to loans that are registered or endorsed for insur-
ance after the date of the enactment of this title. 
SEC. 2145. 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 striking ‘‘$17,500’’ 
and inserting ‘‘$25,090’’;
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(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 pre-
ceding provisions of this title, is further amended by adding at 
the end the following new paragraph: 
‘‘(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 subpara-
graphs (A)(ii), (C), (D), and (E) of this subsection. Such index 
shall be based on the manufactured housing price data collected 
by the United States Census Bureau. The Secretary shall estab-
lish such index no later than 1 year after the date of the 
enactment of the FHA Manufactured Housing Loan Moderniza-
tion Act of 2008.’’ 
(c) TECHNICAL AND CONFORMING CHANGES.—Paragraph (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 fol-
lowing: 
‘‘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 previously adjusted under this 
sentence) in accordance with the index established pursuant to 
paragraph (9).’’. 
SEC. 2146. 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.—Notwithstanding para-
graph (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, advance of 
credit, or purchase, a single premium payment 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 subparagraph (A), 
annual premium payments during the term of the loan, 
advance, or obligation purchased in an amount not exceeding 
1.0 percent of the remaining insured principal balance 
(excluding the portion of the remaining balance attributable 
to the premium collected under subparagraph (A) and without 
taking into account delinquent payments or prepayments).
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‘‘(C) Premium charges under this paragraph shall be estab-
lished in amounts that are sufficient, but do not exceed the 
minimum amounts necessary, to maintain a negative credit 
subsidy for the program under this section for insurance of 
loans, advances of credit, or purchases in connection with a 
manufactured home or a lot on which to place such a home 
(or both), as determined based upon risk to the Federal Govern-
ment under existing underwriting requirements. 
‘‘(D) The Secretary may increase the limitations on pre-
mium payments to percentages above those set forth in sub-
paragraphs (A) and (B), but only if necessary, and not in 
excess of the minimum increase necessary, to maintain a nega-
tive credit subsidy as described in subparagraph (C).’’. 
SEC. 2147. TECHNICAL CORRECTIONS. 
(a) DATES.—Subsection (a) of section 2 of the National Housing 
Act (12 U.S.C. 1703(a)) is amended— 
(1) by striking ‘‘on and after July 1, 1939,’’ each place 
such term appears; and 
(2) by striking ‘‘made after the effective date of the Housing 
Act of 1954’’. 
(b) AUTHORITY OF SECRETARY.—Subsection (c) of section 2 of 
the National Housing Act (12 U.S.C. 1703(c)) is amended to read 
as follows: 
‘‘(c) HANDLING AND DISPOSAL OF PROPERTY.— 
‘‘(1) AUTHORITY OF SECRETARY.—Notwithstanding any other 
provision of law, the Secretary may— 
‘‘(A) deal with, complete, rent, renovate, modernize, 
insure, or assign or sell at public or private sale, or other-
wise dispose of, for cash or credit in the Secretary’s discre-
tion, and upon such terms and conditions and for such 
consideration as the Secretary shall determine to be reason-
able, any real or personal property conveyed to or otherwise 
acquired by the Secretary, in connection with the payment 
of insurance heretofore or hereafter granted under this 
title, including any evidence of debt, contract, claim, per-
sonal property, or security assigned to or held by him 
in connection with the payment of insurance heretofore 
or hereafter granted under this section; and 
‘‘(B) pursue to final collection, by way of compromise 
or otherwise, all claims assigned to or held by the Secretary 
and all legal or equitable rights accruing to the Secretary 
in connection with the payment of such insurance, 
including unpaid insurance premiums owed in connection 
with insurance made available by this title. 
‘‘(2) ADVERTISEMENTS FOR PROPOSALS.—Section 3709 of the 
Revised Statutes shall not be construed to apply to any contract 
of hazard insurance or to any purchase or contract for services 
or supplies on account of such property if the amount thereof 
does not exceed $25,000. 
‘‘(3) DELEGATION OF AUTHORITY.—The power to convey and 
to execute in the name of the Secretary, deeds of conveyance, 
deeds of release, assignments and satisfactions of mortgages, 
and any other written instrument relating to real or personal 
property or any interest therein heretofore or hereafter acquired 
by the Secretary pursuant to the provisions of this title may 
be exercised by an officer appointed by the Secretary without
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the execution of any express delegation of power or power 
of attorney. Nothing in this subsection shall be construed to 
prevent the Secretary from delegating such power by order 
or by power of attorney, in the Secretary’s discretion, to any 
officer or agent the Secretary may appoint.’’. 
SEC. 2148. REVISION OF UNDERWRITING CRITERIA. 
(a) IN GENERAL.—Subsection (b) of section 2 of the National 
Housing Act (12 U.S.C. 1703(b)), as amended by the preceding 
provisions of this title, is further amended by adding at the end 
the following new paragraph: 
‘‘(10) FINANCIAL SOUNDNESS OF MANUFACTURED HOUSING 
PROGRAM.—The Secretary shall establish such underwriting cri-
teria for loans and advances of credit in connection with a 
manufactured home or a lot on which to place a manufactured 
home (or both), including such loans and advances represented 
by obligations purchased by financial institutions, as may be 
necessary to ensure that the program under this title for insur-
ance for financial institutions against losses from such loans, 
advances of credit, and purchases is financially sound.’’. 
(b) TIMING.—Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this title, the Secretary 
of Housing and Urban Development shall revise the existing under-
writing criteria for the program referred to in paragraph (10) of 
section 2(b) of the National Housing Act (as added by subsection 
(a) of this section) in accordance with the requirements of such 
paragraph. 
SEC. 2149. PROHIBITION AGAINST KICKBACKS AND UNEARNED FEES. 
Title I of the National Housing Act is amended by adding 
at the end of section 9 the following new section: 
‘‘SEC. 10. PROHIBITION AGAINST KICKBACKS AND UNEARNED FEES. 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), the 
provisions of sections 3, 8, 16, 17, 18, and 19 of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) shall 
apply to each sale of a manufactured home financed with an FHA- 
insured loan or extension of credit, as well as to services rendered 
in connection with such transactions. 
‘‘(b) AUTHORITY OF THE SECRETARY.—The Secretary is author-
ized to determine the manner and extent to which the provisions 
of sections 3, 8, 16, 17, 18, and 19 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) may reasonably 
be applied to the transactions described in subsection (a), and 
to grant such exemptions as may be necessary to achieve the 
purposes of this section. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘federally related mortgage loan’ as used 
in sections 3, 8, 16, 17, 18, and 19 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) shall include 
an FHA-insured loan or extension of credit made to a borrower 
for the purpose of purchasing a manufactured home that the 
borrower intends to occupy as a personal residence; and 
‘‘(2) the term ‘real estate settlement service’ as used in 
sections 3, 8, 16, 17, 18, and 19 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) shall include 
any service rendered in connection with a loan or extension