Trump administration allowing growth of home “chattel loans,” senators warn

dismantle it now
Kathleen Laura Kraninger testifies during her confirmation hearing before the Senate Committee on Banking, Housing, and Urban Affairs July 19, 2018 on Capitol Hill in Washington, DC. (Photo by Alex Wong/Getty Images)
dismantle it now
Kathleen Laura Kraninger testifies during her confirmation hearing before the Senate Committee on Banking, Housing, and Urban Affairs July 19, 2018 on Capitol Hill in Washington, DC. (Photo by Alex Wong/Getty Images)

Sen. Catherine Cortez Masto and several other Democratic senators are urging the Consumer Financial Protection Bureau to improve transparency on how manufactured homes get their financing.

Cortez Masto along with Senators Kamala Harris, Elizabeth Warren, Jeff Merkley, Patty Murray, Tina Smith, Chris Van Hollen, Richard Blumenthal and Ron Wyden outlined their concerns in a letter to CFPB Director Kathleen Laura Kraninger Thursday.

Manufactured housing retailers aren’t legally required to disclose their connections with lenders, which can lead borrowers to take on more expensive, predatory loans rather than lower-cost options, the senators said.

“Typically, the majority of consumers who have not actively sought to educate themselves prior to visiting a retailer will first learn about the process of financing, purchasing and owning their home from sales staff on a retail lot,” the senators wrote. “These initial interactions have historically led to practices that steered buyers to higher-cost chattel loans offered by the financial affiliates of the retail company.”

This is not the first time Cortez Masto has chastised Kraninger over transparency

In April, Cortez Masto along with several of their Democratic colleagues, demanded that the CFPB director reverse a decision to remove Home Mortgage Disclosure Act (HMDA) Explorer and the Public Data Platform Application Programming Interface (API) from the CFPB website.

Critics have argued that under the Trump administration there have been several policy reversals, such as regulatory oversight on payday lenders and debt collectors, that are slowly dismantling the mission of the agency — protect consumers.

Michael Lyle
Michael Lyle (MJ to some) has been a journalist in Las Vegas for eight years.  He started his career at View Neighborhood News, the community edition of the Las Vegas Review-Journal. During his seven years with the R-J, he won several first place awards from the Nevada Press Association and was named its 2011 Journalist of Merit. He left the paper in 2017 and spent a year as a freelance journalist accumulating bylines anywhere from The Washington Post to Desert Companion. While he covers a range of topics from homelessness to the criminal justice system, he gravitates toward stories about race relations and LGBTQ issues. Born and mostly raised in Las Vegas, Lyle graduated from UNLV with a degree in Journalism and Media Studies. He is currently working on his master's in Communications through an online program at Syracuse University. In his spare time, Lyle cooks through Ina Garten recipes in hopes of one day becoming the successor to the Barefoot Contessa throne. When he isn’t cooking (or eating), he also enjoys reading, running and re-watching episodes of “Parks and Recreation.” He is also in the process of learning kickboxing.

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