H.R. 1699 would amend the Truth in Lending Act (TILA) and the SAFE Mortgage Licensing Act to change the definitions of mortgage originator, loan originator, and high-cost mortgage. Under TILA, employees of manufactured-home retailers that do not accept residential mortgage loan applications, offer or negotiate terms of loans, or advise consumers on loan terms are excluded from the definition of mortgage originator. H.R. 1699 would broaden that exception to include retailers of manufactured homes and their employees, as long as they receive no more compensation for selling a home with a mortgage than they would for selling the same home for cash. The bill also would amend the SAFE Mortgage Licensing Act to exempt the same people from the definition of loan originator.
TILA also provides special protections, such as restrictions on certain fees, to consumers who are offered high-cost mortgages. H.R. 1699 would increase the amount an originator or creditor could charge in interest rates and fees for a loan on manufactured housing before the loan would be considered a high-cost mortgage.