Brief (1)
HB 2675, as amended, amends two sections of the Uniform Consumer Credit Code, the law governing the regulation of credit transactions for personal, family, or household purposes. The bill amends the consumer credit sales section of the Code to allow the seller to charge a prepaid finance charge in an amount not to exceed 5 percent for the purpose of reducing the interest rate on the sale of a manufactured home.
Further, the lender section of the Code is amended to permit a lender to charge the same interest rates on loans secured by an interest in a manufactured home as is allowed for a consumer loan secured by a second mortgage, 18 percent. Also, the lender could charge the same prepaid finance charge on a loan secured by an interest in a manufactured home as for a loan secured by a second mortgage, 8 percent.
House Committee amendments are technical and ensure the intent of the bill is carried out.
Background
HB 2675 was requested by Conseco Financial Services, Inc., whose representative explained that revisions in the Code in 1999 have curtailed the ability of his client to provide financing to Kansas citizens for the purchase of a manufactured home. The bill creates an incentive for sellers and lenders in that it allows a prepaid finance charge to be applicable to the purchase of a manufactured home at the same rate applicable to traditional second mortgages secured by real estate.
The bill also was supported by the Kansas Manufactured Housing Association.
The fiscal note prepared by the Division of the Budget indicates that passage of the bill will have no fiscal effect.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html