Title 12 — Banks and BankingRelease 119-73

§1706f Prohibition against kickbacks and unearned fees

Title 12 › Chapter CHAPTER 13— - NATIONAL HOUSING › Subchapter SUBCHAPTER I— - HOUSING RENOVATION AND MODERNIZATION › § 1706f

Last updated Apr 6, 2026|Official source

Summary

Federal rules in sections 2602, 2607, 2614, 2615, 2616, and 2617 apply to sales of manufactured homes paid for with FHA‑insured loans and to services tied to those deals. The Secretary can decide how far those rules should reach for these transactions and can allow exceptions when needed. Federally related mortgage loan: an FHA‑insured loan to buy a manufactured home you will live in. Real estate settlement service: any service tied to that FHA loan. The Secretary must stop acts or practices in these loans that are unfair, deceptive, or harmful to the borrower.

Full Legal Text

Title 12, §1706f

Banks and Banking — Source: USLM XML via OLRC

(a)Except as provided in subsection (b), the provisions of section 2602, 2607, 2614, 2615, 2616, and 2617 of this title 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)The Secretary is authorized to determine the manner and extent to which the provisions of section 2602, 2607, 2614, 2615, 2616, and 2617 of this title 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)For purposes of this section—

(1)the term “federally related mortgage loan” as used in section 2602, 2607, 2614, 2615, 2616, and 2617 of this title 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 section 2602, 2607, 2614, 2615, 2616, and 2617 of this title shall include any service rendered in connection with a loan or extension of credit insured by the Federal Housing Administration for the purchase of a manufactured home.

(d)In connection with the purchase of a manufactured home financed with a loan or extension of credit insured by the Federal Housing Administration under this subchapter, the Secretary shall prohibit acts or practices in connection with loans or extensions of credit that the Secretary finds to be unfair, deceptive, or otherwise not in the interests of the borrower.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1706f

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73