Wells Fargo Actively Pursing the Manufactured Home Community Loan Market

TriStar Estates mhcAlready the largest presence in the U. S. mortgage market, Wells Fargo (NYSE:EFC) is expanding its ambitions in the commercial real estate market, and more specifically, in the manufactured home community (MHC) sector.

The acquisition of a $9 billion commercial loan portfolio from General Electric has imbued Wells Fargo with over $13 billion in MHC loans, making it dominant in that area: the second player has less than 25 percent of this amount.

As MHProNews reported June 23, 2015, the company hired two MHC veterans from GE Capital, indicating its intent to further pursue this area of commercial real estate. The financing it offers is through Fannie Mae delegated and underwriting servicing programs (DUS), making the loans eligible for a government guarantee.

Borrowers are charged fixed interest rates, a loan-to-value ratio of 80 percent is required, and a loan is for at least $2 million, amortized over 25-30 years. In addition, regarding the properties themselves, half of the home sites must accommodate multi-section homes, occupancy must be at least 85 percent, the majority of the property must be outside a flood zone, there must be sufficient return to service the debt, and the communities must offer competitive amenities.

As motleyfool says, these requirements make MHC lending a safe bet, especially considering that of the $34 billion in outstanding Fannie Mae MHC loans, none are in trouble. The company also earns interest income from the loans as well as origination and servicing fees. ##

(Photo credit: Tri-Star Estates manufactured home community)

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

mas kovach mhpronews shopping with soheyla .jp

Get our ‘read-hot’ industry-leading 

get our ‘read-hot’ industry-leading emailed headline news updates

Scroll to Top
Glastrennwände
blumen verschicken Blumenversand
blumen verschicken Blumenversand
Reinigungsservice Reinigungsservice Berlin
küchenrenovierung küchenfronten renovieren küchenfront erneuern