Fannie Mae New Guidance on MH, Appraisals

[Carnivore]

Fannie Mae Releases New Guidance on Manufactured Homes, Appraisals

Fannie Mae has issued new guidance regarding their manufactured housing guidelines and credit standards including the language in the appraisal standards subsection. The new language states that for purchase money mortgages, the lender must provide the appraiser with a complete copy of the executed contract for sale of the manufactured home and land, or if the manufactured home and land are being purchased separately, the executed contract for each.



In addition, the lender must provide the appraiser with a copy of the manufacturer's invoice if the home is new. The appraiser must analyze the contract (and manufacturer's invoice for new homes) and summarize his or her analysis in the appraisal report. The appraiser must not include any non-realty items such as insurance, warranties and furniture in the value conclusion. Fannie Mae’s appraisal report forms require the appraiser to develop an opinion of value solely for the real property as completed (consisting of the manufactured home, site improvements and the land on which the home is situated) that is the subject of the appraisal.



For a mortgage to be secured the manufactured home must be built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established in 1976 and that appear in HUD regulations. Compliance with these standards will be evidenced by the presence of a HUD Data Plate/Compliance Certificate, a paper document located on the interior of the subject property that contains the manufacturer's name and trade/model number, among other things. This is not to be confused with the HUD Certification Label, which is a metal plate (sometimes referred to as a HUD "seal" or "tag") located on the exterior of each section of the home.

 

[Otis Key]

Andrew, any links? I looked on allregs and Fannie's website and didn't see anything except an announcement.

 

[xm72mhd]

The appraiser must analyze the contract (and manufacturer's invoice for new homes) and summarize his or her analysis in the appraisal report.

Well it will be novel if a lender ever provides the contracts, but that aside what do you guys include in your analysis of these documents?

 

[The Sheriff]

I feel great now knowing I submitted seven comps on a manufactured new construction sale and stated the value was not there for the area for what the builder was trying to charge. Unfortuantely, I haven't received a sniff of an order from that management company since. Funny how appraisers will cave in... all the builder sales closed in the $188K to $200K range. Mine was the smallest builder sale and I came in about 15K lower based on the subject's market area of resale properties. Oh well... saved myself a big headache if they get foreclosed on...

 

[xm72mhd]

OK. Nobody nibbling. Let me put it this way. Do think the phenomenon of MH depreciation is related to excessive entrepreneurial profit (gouging) on the part of MH dealers? If so how much?

And if so, the report of your examination of the documents would seem to be an excellent place to bring it up, but what do you use for support of your opinions.

 

[Caterina Platt]

Ummmm, maybe I'm wrong here, but hasn't this already been in play for a couple years?

Maybe the specifics about the lender providing the invoice, etc. to the appraiser is the 'new' part?

I was under the understanding we were already doing this. Am I having a Twilight Zone moment?

 

[xm72mhd]

Ummmm, maybe I'm wrong here, but hasn't this already been in play for a couple years?

Maybe the specifics about the lender providing the invoice, etc. to the appraiser is the 'new' part?

I was under the understanding we were already doing this. Am I having a Twilight Zone moment?

Not really, but something like a senior moment. The revelation is in the lender duty and I think the analysis.

Mostly what I have seen is that the large discrepancy between invoices is the norm in the industry. So what?

 

[The Sheriff]

What worried me was the fact that an immaculately maintained, 2005 constructed, little used manufactured similar in size (approximately 1200 Sq Ft) and utility could not sell for $150K after being on the market for six months. I could deck that 2005 property out in travertine and granite for $20K easily... yet the sales price was still $188K for the property I was appraising.

Even worse... the owners who lived out of state picked the lot site unseen. It was the biggest lot in the 'hood as it was a corner lot, but it also backed traffic to the North on the main artery leading to ten other subdivisions and had two water towers to the East.

 

[Caterina Platt]

Edd,

:new_smile-l: I'm only 42. I don't plan on experiencing senior moments for at least another 20 years.

The lender being required to provide this information may be the 'new' thing, and I would agree that it is 'improved' also if that's the case.

But...analysis of the contract and invoice has been in play for several years. Our 03/05 1004C has a spot on the first page for this analysis, and the older 6/2003 version of the 1004C has it clarified in the 'guidance for completion' Item #3.

Oh well. Maybe it's just a reiteration, and the 'lender must provide' is new.

 

[Caterina Platt]

Sherriff,

Sounds to me like you did your job well.

If those that didn't get damaged (buyers and lender) don't bother to thank you, please accept our thanks as a small compensation. Too bad it doesn't pay the bills, eh?