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Posts Tagged ‘risk’

New FHA Proposal could Cost Lenders more

August 15th, 2013 Comments off

It will more expensive for lenders to do business with the Federal Housing Administration (FHA) if a new method for determining lenders’ liability for poorly written loans that default is adopted. Currently, when defects are discovered lenders have to eat the losses on those loans. Under the new proposal, FHA would conduct a sampling of loans, determine the percent that have underwriting errors, extrapolate that number to the portfolio and the lender than pays an “estimated total risk” to FHA. Phillip Schulman of K&L Gates law firm, and a former lawyer with HUD, says, “If this goes through, it means it will be a lot more expensive to be an FHA lender. If a lender runs the risk that every time he makes a mistake it will be multiplied against his entire portfolio, he has to be very cautious.” In June 2013, of 6,251 loans FHA reviewed from the first quarter, only 19 percent had no mistakes, while 44 percent were unacceptable, and 37 percent were deficient, according to nationalmortgagenews. In addition, if the percent of loans with defects crosses a particular line, MHProNews has learned it would automatically trigger more scrutiny.

(Image credit: hansafx)

North Dakota Oilfield Camps in Jeopardy of Being Closed

August 7th, 2013 Comments off

Williams County commissioners in Williston, North Dakota are denying two Conditional Use Permit (CUP) extensions for workforce camps built to service oilfield workers. The extension for Rik Ostert was denied because he did not build a road he agreed to three years ago, and then rented space on his property for a commercial business after the commissioners denied his request to do that. Ostert was given 60 days to remove his seven modular homes. The extension for Stallion Oilfield Services was denied because the company is using 52 skid trailers and recreational vehicles for housing instead of modular units, and rented space to another company. Stallion was also given 60 days to vacate, as MHProNews has learned from willistonherald.com. In addition, Target Logistics owes over $1 million in fees, including $608,000 for 2013, and back fees for 2012. With over $3 million still owed to the county, those in arrears were given one week to pay their fees or risk having their facilities shut down.

(Photo credit: associatedpress–modular mancamps at Williston, ND)

Affordable Housing Shortage is Critical; Dodd-Frank is “Deadening”

June 13th, 2013 Comments off

According to the president of the Federal Home Land Bank (FHLB) of New York, Alfred DelliBovi says the need for affordable housing is becoming critical, especially as the availability of federal funds for housing decreases. As MHProNews has learned from nationalmortgagenews, each of the banks’ 11 districts has an Affordable Housing Program which is required to set aside ten percent of its private earnings to support housing for low income residents. He says given the state of the sluggish economy, it’s difficult for those of modest means to save enough for a down payment, and as former deputy director of the Department of Housing and Urban Development, he knows the importance of assistance. Calling the Dodd-Frank Act “deadening,” “poorly constructed” and “costly,” he says legislators pass laws telling someone else to enforce the rulings without understanding the root cause or knowing the full impact of the legislation. “Reducing risk sounds like a great idea, but if you do it to the point where business is impossible, that’s crazy,” he adds.

(Image credit: bloombergbusinessweek)

Manufactured Housing Supports Washington State Parks

June 12th, 2013 Comments off

As virtual-strategy.com tells MHProNews from Olympia, Wash., the Manufactured Housing Recreational Vehicle (MHRV) Show Association has donated a portion of its ticket sales from shows in Feb. and May, 2013 to Washington State Parks. A special presentation was held in Olympia when the association presented a check for $7,188 to Assistant Parks Director Mike Sternback. MHRV show director Dave Helgeson says, “Over 40 Washington State Parks are at risk of closure due to massive budget cuts so we felt we needed to help in some way.” The MHRV promotes the manufactured home and recreational vehicle industries in Washington.

(Photo credit:  mhvillage–Ranch Mobile Home Park)

Author again Touts Modular Homes

May 6th, 2013 Comments off

In Prefabulous and Almost Off the Grid, Sherri Koones’ most recent book about prefabricated housing, she features over 30 homes which consist of pre-made components to varying degrees. A long-time proponent of factory-built homes, Koones notes that many home builders are more focused on selling homes than adapting to new materials and energy efficiency techniques which may benefit the homeowner in the long run. Reviewed in thesheridanpress, she addresses the prejudice against off site-built homes as being cheap or shoddy, and notes the pluses: Fewer weather problems, more consistent quality, less building site risk and environmental impact, and less waste. As MHProNews has learned, Koones also stresses the energy efficiency in modular homes that site-built homes are hard-pressed to match. Some have solar panels and geothermal furnaces that produce more energy than they use, thereby earning a small income for the owner.

(Image credit: jetsongreen–modular d haus)

Manufactured Housing in Florida is Losing Insurance Coverage

April 26th, 2013 Comments off

As it looks for ways to drop its risk, marconews reports Citizens Property Insurance Co., the state-run insurer that covers 130,000 factory-built homes in Florida, most of which are over 20 years old, is depreciating older homes, offering cash value in case of a loss instead of replacement cost. In one instance, a couple did have coverage of $64,000 on their 1988 manufactured home purchased for $67,500 in 1998. That coverage, which cost $1,362 a year in 2012, has been reduced to $18,000, now costing $1,129 per year. If they did suffer a loss they could not buy much for $18k. Likewise, if they tried to sell their home, no one would likely buy it because it could not be fully covered. The change in coverage applies to manufactured homes built before 1994, which accounts for roughly 75 percent of all MH statewide. Jim Ayotte, executive director of the Florida Manufactured Housing Association (FMHA) says if the situation does not change, retirees may go elsewhere. As MHProNews has learned, he added if homes are destroyed, it will leave holes in communities. Legislation to counter Citizens’ cash-value policy has not made it through the legislative process. ##

(Photo credit: MHVillage–Lake Village MHC, Nokomis, Fla.)

Housing Becoming More Expensive

March 15th, 2013 Comments off

MarketPlace.org informs MHProNews Eric Belsky, managing director of the Joint Center for Housing Studies at Harvard University, says in 2010 more than 25 percent of renter households paid over 50 percent of their income for rent, an increase from 20 percent in 2000, putting more people at the risk of homelessness. A study by the National Low Income Housing Coalition estimates employees need to earn $18.79 an hour for rent to remain at 30 percent or less of income, but the average hourly wage is $14.32. Belsky says this often translates into insufficient money for food, healthcare, and other expenses, limiting the economic impact on the local community.

(Photo credit: zimbio)

 

Minimum Downpayment not Specified by CFPB

January 21st, 2013 Comments off

As the nationalmortgagenews tells MHProNews, while the much-awaited Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage rule issued Jan. 10 covers rules to determine borrowers’ ability to repay loans and lenders’ protection from liability, it fails to address a required minimum downpayment. Regulators had originally proposed a 20% minimum, but need to decide what if any requirement will be added, and what share of the risk, in any, lenders will need to hold. Meanwhile, the CFPB issued 1,600 pages governing mortgage servicer regulations, setting new limits on foreclosures while borrowers are simultaneously undergoing loan modifications. The regulations apply to servicers who handle 5,000 loans annually. The rules also require borrowers to be notified before their interest rates adjust.

(Image credit: moneycontrol)

Division has New Head, Arms & Legs

January 15th, 2013 Comments off

The Nevada Division of Housing, which oversees affordable housing and provides low interest mortgages and down payment assistance to eligible candidates, has a new administrator. Jim deProsse, formerly the head of the Nevada Manufactured Housing Division, will assume his new position Jan. 22. As lasvegassun tells MHProNews, the division also assists borrowers at risk of default or foreclosure.

(Photo credit: Wikipedia)

MHC Residents: Busted Walkways are Dangerous

January 7th, 2013 Comments off

The StandardExaminer reports from Farr West, Utah the Westwood Village Homeowners Association will meet Tue., Jan. 8 to discuss cracked and uneven sidewalks that pose a risk to the 400 seniors who live in the 350 homes at the MHC. After attempts to get a response from owner Equity LifeStyle Properties, Inc. were not successful, the homeowners association decided to go public with their plight. Streets, sidewalks, and driveways are allegedly poorly maintained, and the roots of trees have contributed to the damage, especially worrisome for those who can only move around with the aid of walkers. Association president and resident Richard Robinson says he hopes the owner will have a representative at the Tue. meeting. As MHProNews knows, Equity LifeStyle is the largest owner of MHCs in North America.

(Photo credit: Bryon Saxton/StandardExaminer–Richard Robinson, homeowners association president)