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.