MHI sent a letter to the Federal Reserve Board regarding a requirement that all "higher priced loans," including personal property loans, must have escrow accounts. Click here to view the letter. As the letter points out, the lack of a unified, systematic process for the collection of taxes among local governmental entities will force lenders to cease providing manufactured housing personal property loans. In light of these and other compliance difficulties, MHI requested that personal property loans for manufactured homes be exempt from the escrow requirements. Thanks go to Don Glisson of Triad Financial Services, Inc. who shared with MHI a similar letter sent by the Independent Community Bankers Association relating to the escrow issue.
Source: MHI Newswire