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Posts Tagged ‘manufctured housing loans’

Secondary Market for Manufactured Home Loans Coming from FHFA

October 2nd, 2015 Comments off

federal_housing_finance_agency__logoAccording to nationalmortgagenews, the Federal Housing Finance Market (FHFA) will issue a final rule within the next 12 months requiring Fannie Mae and Freddie Mac to better serve the manufactured housing market and rural markets, and increase the preservation of affordable housing under the “duty-to-serve” mandate.

The rule will therefore provide a secondary market for manufactured housing loans, lower financing costs and providing better protection for consumers, long sought goals of the the manufactured housing industry.

The agency also intends to update its the GSEs credit scoring models. FHFA will “continue to assess the feasibility of leveraging alternative credit scores for underwriting, disclosure and pricing purposes, including operational and system implications.

FICO has made significant changes since the FICO 4 credit scoring model was introduced in 2004, as MHProNews has learned. Different groups have suggested more current credit scoring models should be introduced, but FHFA Director Mel Watt said updating the FICO of developing an alternative is a complicated process, and there was no immediate indication that will be done within this fiscal year, which began Oct. 1.

The agency also intends to work on different remedies for dealing with lender disputes with Fannie and Freddie. ##

(Image credit: Federal Housing Finance Agency)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

The Atlantic’s article on Manufactured Housing Evoked Comments

October 29th, 2014 Comments off

mfg_home__pine_grove_mfg_homes_incCommenting on The Atlantic‘s article about manufactured housing (MH), the CFPB and MH financing, Amy Bliss of the Wisconsin Housing Alliance, compliments the piece for citing facts such as:

> energy efficiency,
> less waste in the building process,
> availability to middle-incomers,
while acknowledging the difficulty in finding financing for chattel loans.

Writing on Industry Voices  at MHProNews, she notes the lack of a secondary market with few lenders for MH loans, saying the CFPB should mandate that any lender allowing conventional mortgages cannot simply deny a manufactured home loan.

Doug Ryan, with the Corporation for Enterprise Development, a non-profit that supports manufactured housing as an affordable alternative, says in The Atlantic, The biggest problem (with MH loans) is with how the loans are done. It’s about as enjoyable as buying a used car.”

Bliss says many manufactured home consumers are elderly, the disabled and families with children. The industry should make a talking point out of the disparate impact made on these three protected age groups when lenders refuse to make loans to MH in communities.

Bliss notes that considering manufactured homes in land lease communities as real property is not an answer, but suggests filling communities with new MH will add vigor to the communities. For the full Bill OpEd, click here.

MHProNews  will have a more in-depth look at The Atlantic‘s coverage of the CFPB’s MH Finance report, planned for later this week. ##

(Photo credit: Pine Grove Manufactured Homes)

matthew-silver-daily-business-news-mhpronews-com(Submitted by Matthew J. Silver to Daily Business News-MHProNews)