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Posts Tagged ‘housing loans’

Tribal Nation Makes Loans on HUD Code and Mod

May 16th, 2013 Comments off

PRWeb informs MHProNews that through the Department of Housing and Urban Development (HUD) Oklahoma City’s Bank2 is partnering with First Interstate Bank of Montana, Wyoming and South Dakota to provide affordable housing loans to Native Americans. Offering competitive interest rates and a low down payment, Section 184 Indian Home Loan Guarantee Program offers financing for our native populations to purchase, refinance, rehab, or build a home. Bank2 is wholly owned by the Chickasaw Nation and makes loans on manufactured and modular homes, using their flexibility to meet housing challenges, as well as offering other innovative financial products to customers on and off tribal trust lands. They also offer a range of government-backed commercial through the SBA and the USDA.

(Photo credit: trulia)

Rep. Fincher’s Remarks Regarding HR 1779 in the Congressional Record

May 3rd, 2013 Comments off

Rep. Stephen Fincher (R-Tenn.), Rep. Bennie Thompson (D-Miss.), and Rep. Gary Miller (R-Calif.) sponsored The Preserving Access to Manufactured Housing Act, HR 1779, which will amend the provisions in Dodd-Frank that curtail the availability of manufactured housing loans. In remarks in the Congressional Record of April 26, 2013, Rep. Fincher, while noting the importance of manufactured homes as affordable housing that many families rely on, states the housing turndown resulted in an 80 percent reduction in the production of MH, the closing of 160 plants, and the loss of 200,000 jobs. He says the Consumer Financial Protection Bureau (CFPB) issued guidelines as required under the Dodd-Frank Act that will classify many manufactured home loans as predatory and high-cost under the Home Ownership Equity and Protection Act (HOEPA). He says, “ Simply put the cost of originating and servicing a $250,000 loan and a $25,000 loan are the same in terms of real dollars, but the cost as a percentage of each loan’s size is significantly different. This difference causes the smaller-sized manufactured home loan to potentially exceed the new HOEPA thresholds set by Dodd-Frank and be categorized as a high-cost mortgage and stigmatized as predatory, even though there is nothing predatory about the features of the loan. The liabilities associated with making and obtaining a HOEPA high-cost mortgage will likely prevent lenders from offering loans to low and moderate-income homebuyers, denying families access to necessary credit for new and existing manufactured homes.” Noting the business model for buying manufactured homes differs from a traditional mortgage, he adds the measure would also remove manufactured home retailers and salespersons from being classified as loan originators, providing they do not receive compensation from a lender. As MHProNews reported April 27, the Senate will be considering a similar bill. For the entire entry into the Congressional Record, please click here.

(Photo credit: Champion Homes)

USDA Loans Include HUD and MOD

January 31st, 2013 Comments off

TotalMortgage informs MHProNews if you live in a rural area and meet the income qualifications you may be eligible for a USDA Home Loan, with no down payment, 100% financing including closing costs, government guaranteed and competitive rates. Part of the US Dept. of Agriculture’s Rural Development Single Family Housing Loan Guarantee Program, income eligibility is capped at 115% of the area’s median income. All loans are 30-year fixed, and types of construction included modular homes and new manufactured homes. The article notes this program hit bottom two years ago when an audit uncovered over $4 billion in ineligible housing loans, but that situation has been cleaned up. In addition, approval may be granted in as little as 15-30 days.

(Image credit: mortgageorb)

MHI Testifies at Dodd-Frank Hearing

July 12th, 2012 Comments off

Speaking for the Manufactured Housing Institute (MHI) at a hearing on the impact of Dodd-Frank mortgage requirements before the House Financial Services subcommittee on Financial Institutions and Consumer Credit Wed. July 11, Tom Hodges, General Counsel for Clayton Homes, suggested Congress create a secondary market for manufactured home buyers so all residential borrowers will have access to the same products. Drawing more lenders to the market would create more competition and lower financing charges, he said. He also urged Congress to avoid any regulation that would be a barricade to lenders’ ability to make manufactured housing loans. His role at Clayton, the largest producer of manufactured homes in the country,  includes implementation of Dodd-Frank and other regulations. For the full transcript of his testimony, please click here.

(Photo credit: Pine Grove Mfg. Homes)

High Interest in Low-income Housing?

April 10th, 2012 Comments off

OriginationNews says Amherst Securities Group reports lower-priced housing loans will outperform jumbo loans at current prices, suggesting investors should look for bonds with smaller loan sizes. The report says a government bulk REO sale would stabilize the low-income housing prices, and clear out many of the 3.2 million homes in the shadow inventory, 2.4 million of which are under $200,000. MHProNews.com has learned this will contribute to the eventual rise in home prices. Amherst says, “If the program does not take off, growing investor interest will clear the inventory over time, but that will take a good deal longer.”

(Image credit: totalmortgage)

MIPs Increase for Specific FHA Projects

April 10th, 2012 Comments off

InsuranceNewsNet has issued a report from Housing and Urban Development (HUD) saying the mortgage insurance premiums (MIPs) for certain FHA multifamily housing and health care facilities will increase 15 basis points FY 2013. The market-rate for new construction/substantial rehabilitation loans will rise 20 basis points (except 223(a)(7) will increase five basis points). Not included in the increase are Low Income Housing Tax Credit Loans, and “other affordable housing loans for HUD-assisted properties, or loans insured under FHA’s Risk Sharing programs.” MHProNews.com has learned this MIP raise will increase funds to the Treasury Dept. and also make the playing field between private lending and FHA move level.

(Image credit: bankrate)

 

MHI Sluggers Come to Louisville, Part II

January 16th, 2012 Comments off

In his address to a packed room at the Louisville Manufactured Housing Show Jan. 12, Jason Boehlert, Vice President for Government Affairs at MHI, said manufactured housing is a good fit considering the current economic conditions, because “it’s nice to have the home of your dreams, but it’s better to have a home you can afford.” Noting that 21 percent of all new housing starts for the past two decades has been manufactured housing, Boehlert said Congress needs to realize it is affordable housing, and focus its attention on correcting HUD’s misapplication of Congress’ intent with regard to regulation. Regarding financing, Boehlert said there is a limited secondary market for manufactured housing loans, so community banks are one place to seek additional financing opportunities. He said the Consumer Financial Protection Bureau (CFPB) now has a director, Richard Cordray. If that ‘recess’ appointment by President Obama holds up, Cordray has made investigating non-bank lenders a top priority. He cautioned lenders that “there are 3,000 new regulators out there looking for something to regulate.”

(Photo credit: MHProNews)

MHARR’s meeting with GNMA may Spur MH Industry

December 20th, 2011 Comments off

MHProNews has learned that theMHARR Board officials and staff met on December 14, 2011 with Government National Mortgage Association (GNMA) President Theodore W. Tozer to discuss the securitization requirements that have limited FHA (Federal Housing Administration) Title I manufactured housing loans. Currently, GNMA requires a minimum net worth of $10 million for loan issuers and a 10 percent reserve of loans issued (the “10-10 rule”) for FHA Title I loans. Securitization for site-built homes only requires originators to have a net worth of $2.5 million. GNMA officials acknowledged the 10-10 criteria is based on 20-30 year-old data and they are willing to reconsider in order to encourage more lenders to enter the Title I market. MHARR also stressed that in a 2010 meeting, GNMA had asked industry finance companies and the Manufactured Housing Institute (MHI) for information to allow more lenders to obtain GNMA securitization but received no response. Noting that current manufactured home loans perform at least as well as site-built loans, MHARR strongly urges interested finance companies to take advantage of this window of opportunity and provide GNMA with information justifying a lower net worth requirement.
(Graphic credit: MHARR)