Fannie Mae New Guidance on MH, Appraisals

[Otis Key]

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.

Edd, it wasn't a big enough carrot (your question was too general), but I'll try to reply to it. Like I said, it's too general about depreciation. In fact, I've seen some cases whereby there was actual appreciation. It depends upon the quality of the unit, the location, the buyers and the amount of work (improvement additions and preventative maintenance) that goes into the situation.

But then, in the case of your question, that was the reason for the 1004C and the requirement for the appraiser to review the factory-to-dealer invoice. If there's an excessive profit factor then Fannie wanted us to indicate as such (in other words, we're to take on the additional job of profit police).

 

[lmichels]

I had the opposite experience not long ago. A MH dealer sold a model home for the base price suggested by the manufactured, in spite of over $30,000 in upgrades (hardwood floors, granite, extra cabinets, fancy fireplace, entertainment center, fancy windows, French doors, etc...). Cost approach came in higher than the purchase price.

MH dealers seem to act more like car dealers than realtors. Totally detached from the actual market for real estate.

 

[Tejus]

Did anybody find a link for this?

gracias.

 

[Lobo Fan]

Palm Harbor put the pork to a bunch of folks out here. They bought up a bunch of land west of Rio Rancho, divided it into 1/2 acre parcels (worth about $1500 at the time. Plopped a $55,000 - $60,000 MH on it and sold hem with $500 down FHA for $120,000. There was some Skippy appraiser in on this one. They loaded up the land/home packages into the MLS like they were resales. Blew the comps way up.

For the locals look at 2004 -2005 sales on 25th and 26th streets in RR.

I have done about 5 repos in there in the last few months. All coming in where they should have been...atround $60,000.

This is why I refuse to do land home packages. Way too much hanky panky for my tastes.

What a scam. Of we'll pay off your credit cards and your truck and roll it all into one payment. Of course when they went to refi, the prices had settled back down again.

 

[Otis Key]

Did anybody find a link for this?

gracias.

There is, as of yet, no published new Fannie Guidelines - Freddie did revise their guidelines to the new form - stay on track Chuck.

 

[Sherrie]

Two Pages

See page 7 & 8 of the June 2007 announcement. Subsection B has been clarified:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2007/0706.pdf

Have a super day!!

 

[Jo Ann Meyer Stratton]

Thank you for that link--read it very carefully and have frantic emails in to various people at Fannie Mae.

The have a huge error on Page 4 under The Security Instrument, second paragraph. The serial number DOES NOT appear on the exterior HUD label. The number on the HUD label is for confirmation to the HUD building code and is NOT the serial number. The serial number is a completely different animal and only appears on the Data Plate in the interior and etched into the front crosspiece of the steel undercarriage and is not on the HUD label.

Page 5 they use the term Affidavit of Affixture--which is a term unique to Arizona. Other states use different terms so that isn't a national nomenclature.

 

[Jo Ann Meyer Stratton]

Fannie Mae has just issued Announcement 07-12 with Correction and Clarification to Announcement 07-06 Regarding Manufactured Housing Standards. See pages 4 and 5.

The paragraph titled Underwriting on Page 2 of 07-06 has been amended.

Information regarding serial numbers under The Security Instrument has been corrected on Page 4 of 07-06.

Additional information titled Affidavit of Affixture at the top of Page 5 has been amended and enlarged. Any form of affidavit that meets the Guide requirement is acceptable. Arizona uses the term Affidavit of Affixture--other states use different terms for their requirements.

So if completing manufactured home assignments that will end up with Fannie Mae--make sure that you have copies of both Announcements.

Neither Announcement has definitions for eligibility of factory built homes, however they refer to the HUD label and data plate several times in both documents. So----"on frame" modulars would not have a HUD label or a data plate---so it appears that still means "on frame" modulars are still not eligible for Fannie Mae.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2007/0712.pdf

http://appraisersforum.com/redirect...e.com/sf/guides/ssg/annltrs/pdf/2007/0712.pdf

 

[Wally Jones]

Jo Ann,

Thank you for your continuing diligence with regard to appraising manufactured homes! Your efforts are taken for granted but we all owe you our gratitude. Now, if you can just figure out how to turn that into cash you'll be able to retire soon!

Thanks again for pointing out the errors to Fannie and for posting the link to the amended announcement.

 

[debbie graham]

Jo Ann

Thanks Jo Ann,
Is their a way to get automatic e-mails from Fannie Mae regarding new information, updates, etc.
Thanks!
Debbie